The recent Tesla shareholder meeting has garnered significant attention, primarily due to the approval of Elon Musk’s pay package. However, Goldman Sachs analyst Mark Delaney highlights other crucial takeaways from the meeting that have received less attention.
Key Takeaways from the Shareholder Meeting
- TSLA Stock Performance: The stock has shown weakness, with Delaney reiterating a Neutral rating and a price target of $400.
- Analyst Insights: Delaney emphasizes that the focus will now shift to Tesla’s ability to achieve its objectives, following the preliminary approval of the 2025 CEO incentive award.
- Pay Package Details: The new pay package will award Musk with new shares up to an incremental 12% of the company’s share count, potentially totaling around $1 trillion in value. The package includes various milestones that must be met, such as:
- Market capitalization milestones from $2 trillion to $8.5 trillion
- Adjusted EBITDA hitting an annual rate of $50 billion to $400 billion
- Delivery of 20 million electric vehicles
- 10 million active FSD subscriptions
- 1 million cumulative robots delivered
- 1 million robotaxis in commercial operation
Updates on Tesla’s Projects
- Optimus: Production for the Optimus Gen 3 is expected to begin in 2026, with Gen 4 production hoped for in 2027 and Gen 5 in 2028.
- FSD: Tesla has partial approval in China, with full approval expected in February or March 2026.
- Cybercab, Tesla Semi, and Tesla Roadster: The company shared updates on these projects, showcasing its commitment to innovation and expansion.
- Semiconductors: Tesla may collaborate with Intel in the future, adding to its list of partners, which includes Samsung and Taiwan Semiconductor. The company is considering building its own chip fab to meet future supply needs.
Conclusion
After the shareholder meeting, Delaney remains Neutral on Tesla, citing the company’s potential for growth in EPS, driven by contributions from autonomy and robotics. Tesla’s stock is down 4.1% to $427.66, trading within a 52-week range of $214.25 to $488.54. As the company continues to evolve and expand its projects, investors will be watching closely to see if Tesla can achieve its objectives and drive long-term growth.