Analysts are revising Tesla’s (TSLA) stock price target.

Step by step, Tesla stock (NASDAQ: TSLA) is steadily recovering from the losses it has suffered since early 2024. The company is strengthening its delivery numbers through effective cost-cutting measures as June approaches, a historically robust period for EV manufacturers.

However, some unresolved issues remain, casting a shadow over Tesla’s headquarters. Chief among these is the CEO’s compensation package, which could have a substantial impact on the company’s future. On June 13, Elon Musk will discover the fate of his $51 billion compensation package at the shareholder meeting.

Additionally, Musk is facing a shareholder lawsuit over his sale of $7.5 billion worth of Tesla stock in late 2022. This sale occurred just before a January 2023 sales report that caused the stock price to plummet.

With the next earnings report due on July 17, many events could significantly impact TSLA’s stock performance.

Musk could leave Tesla if he is denied his share

Elon Musk aims to secure a personal voting stake of at least 25% in Tesla to maintain significant influence over the company’s stock price. If the compensation plan goes through, he will have a 21% stake, which is close to his target and will likely ensure his continued involvement with Tesla.

However, if he is denied the promised shares, his stake will drop to 9%, reducing his incentive to stay. In that case, Musk could consider stepping down to focus on his other ventures, which would have a significant impact on Tesla’s future performance.

Analysts believe the annual meeting could have an impact on TSLA stock

Wall Street analysts are focusing more on the upcoming meeting than on delivery or production numbers, highlighting the impact it could have on TSLA stock.

In a recent research note, Barclays analyst Dan Levy highlights that the crucial issue for shareholders at Tesla’s annual meeting on June 13 is whether the compensation plan should be reapproved retroactively from 2018.

Levy rates Tesla stock “neutral” with a $180 price target, indicating he expects the stock to remain stable.

On May 31, Morgan Stanley maintained its “overweight” rating on Tesla stock and kept the price target steady at $310.

Piper Sandler maintained its overweight rating on Tesla Inc., with a stable price target of $205. The company’s position is focused on the upcoming shareholder meeting on June 13 and not so much on financial models.

Jefferies analyst Philippe Houchois notes: “As poorly designed as the plan was, we believe denying Elon Musk his previous compensation would appear to be misplaced ‘buyer’s remorse.’ Conversely, veiled threats to move AI operations elsewhere seem hollow given Tesla’s substantial investments in AI.” Houchois rates Tesla shares a hold with a price target of $165.

Some analysts are shifting their focus to deliveries, China and Robotaxi

Canaccord Genuity analysts have raised their price target on Tesla stock and revised their delivery estimates for the coming quarter and fiscal year 2024, focusing on delivery numbers rather than the upcoming shareholder meeting.

The investment bank maintained its buy rating on the stock and raised its price target to $267 from $222, indicating 50% upside potential from the closing price of $175.

Wedbush analyst Dan Ives predicts Tesla shares will reach $275-$300 within the next 12 to 18 months. This forecast is based on the expected approval of Elon Musk’s compensation package and strong demand in China.

Ives also emphasizes the importance of Tesla’s Robotaxi event on August 8, expecting major updates on its Full Self-Driving (FSD) technology and a potential $25,000 vehicle.

It looks like the upcoming shareholder meeting could be historic and fateful for Tesla, potentially changing the company as we know it.

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