Bernstein Issues Warning: Tesla CEO’s $56B Pay Package Could Face Challenging Shareholder Vote

Bernstein analysts doubt the approval of Elon Musk’s $56 billion pay package by shareholders. Approximately 25% of voting shares are held by investors likely to vote against it. Even a 75% voter turnout would require 73% of uncommitted voters to approve the package. If rejected, Tesla’s diluted share count could decrease by 9% and stock price could drop 5% or more. Retail shareholders support Musk, but Bernstein advises caution, maintaining an Underperform rating on Tesla. In other news, Tesla experienced a 64% drop in sales in Germany last month, with new registrations declining overall.