Tesla shareholders are unlikely to pass Elon Musk's $56 billion pay package Thursday — which will pressure the company's stock on fears that the CEO could leave the electric vehicle maker — Bernstein told clients in a note Monday.
Tesla has never seen turnout higher than 63% in a shareholder vote, Sacconaghi wrote.
Even assuming turnout is much higher at 75%, Musk would need 73% of unaccounted for voters to back his pay package, the analyst said.
Tesla garnered a 73% "yes" vote on Musk's original pay package in 2018, Sacconaghi said, but it was a much less controversial vote where passive shareholders backed the package.
"We believe that if the pay package is rejected, the stock would likely be down (potentially 5%+) amid fears that Musk might leave Tesla," Sacconaghi wrote.
Persons:
Elon Musk's, — Bernstein, Glass Lewis, Toni Sacconaghi, Tesla, Sacconaghi
Organizations:
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