Tesla (TSLA) shareholders approved CEO Elon Musk’s controversial $56 billion compensation package, as well as other measures at Thursday’s shareholder meeting. Financial analyst & YouTuber "Meet Kevin" Kevin Paffrath joins Market Domination to discuss the shareholder meeting and the future of the EV company under Musk’s leadership.
"The shareholder vote now behind us is great news. It’s a big negative catalyst away for Tesla," Paffrath explains. He says that Musk’s vision of full self-driving is "probably going to be a lot safer for the entire world," as we head toward an autonomous future, however, he doubts whether it will happen as quickly as Musk suggests. Regardless, Paffrath says he’s bullish on the stock in the next two to four years as the company "still has probably the best moat in full self-driving that exists."
Paffrath was in favor of Musk’s pay package, stating, "the deal was made in 2018 and it was very public… Frankly, if that same deal was made today at those prices then, everybody would look at that as a shareholder and go — well, at least 70% like we had then — ‘Of course, we’re going to support if you can move the market capitalization of this stock essentially exponentially. Of course, we’re going to support paying for you.’ So receiving that and then being frustrated about Elon in the short term, I don’t think is fair. I think it hits on an element of justice."
He adds that after the company started offering consumers a lower monthly payment, he expects Tesla shares to skyrocket and "form a bottom here in delivery numbers." "So really, what Elon’s doing here is he’s creating a bottoming process in the actual manufacturing of electric vehicles. At the same time, he’s rehired back the charging team, which is great, most of them, at least. And all of the other electric vehicle companies that I’m studying — Ford, GM, — they’re all scared," he explains.
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