Morgan Stanley survey predicts approval of Elon Musk’s 2018 compensation plan by Tesla investors.

The analyst discussed Tesla’s upcoming 2024 Annual Stockholders’ Meeting and the potential results of the vote regarding Elon Musk’s 2018 compensation plan. Earlier this year, a Delaware Judge rescinded Musk’s 2018 CEO Performance Award, prompting Tesla to request its shareholders to ratify the compensation plan at the upcoming meeting.

The company has been actively encouraging shareholders to vote for the ratification of Musk’s pay plan and Tesla’s redomestication to Texas. The analyst also noted that TSLA stock would likely experience volatility due to the shareholder vote on Musk’s 2018 CEO Performance Award.

It was emphasized that Elon Musk needs Tesla now more than ever, as the broader collection of his businesses may collectively invest many tens of billions of dollars in AI infrastructure in the coming years, and the cost of capital is paramount for AI supremacy. Additionally, a summary of the results of Morgan Stanley’s survey, which was gathered from 109 respondents, was presented.

The majority of respondents (57%) expect Elon’s compensation package to be approved, outnumbering respondents who do not expect approval (23%) by more than 2:1. If Elon’s comp package is approved, the majority (68%) expect Tesla stock price to react positively over the next three trading days.

The survey findings indicated that if Elon’s comp package is approved, 20% expect a neutral stock price reaction (+/- 2%) over the subsequent three trading days, whereas if the comp package is not approved, only 7% expect a neutral stock price reaction. The analyst also stated that majority of the respondents expect Tesla stock price to react positively over the next three trading days if Elon’s compensation package is approved.

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