Cathie Wood Commends Musk's Dedication to Tesla Shareholders. Predicts Negative Impact If Renege On CEO's 2018 Pay Package

$Tesla(TSLA.US)$ $BYD COMPANY(01211.HK)$ $NIO Inc(NIO.US)$ $XPeng(XPEV.US)$ The article reported that Cathie Wood (CW) took to X and expressed her admiration for Musk’s shareholder alignment. She made 5 points on why shareholders should vote "For" the proposals one of which is ratifying the CEO's 2018 Pay Package:

1) “I'd argue that no other executive is as aligned with shareholders as Elon Musk, who committed to no salary, no bonus, no stock comp FOR 10 YEARS, unless he created tremendous value for Tesla shareholders.”

2) CW went on to highlight Musk’s unique compensation package, which prevents him from cashing in on his options until five years after exercising them. This arrangement has seen Musk working without compensation since 2018.

3) Despite initial skepticism about Musk’s ability to meet his compensation package goals, CW pointed out that Tesla’s performance has exceeded expectations.

“Tesla shot up to ~$414 as Tesla hit the milestones in Musk's pay package: compounding revenues at a 49% annual growth rate, adj-EBITDA 142%, and market cap 91% from Q1'18 to Q2'22. Even after soaring interest rates and a Chinese price war, TSLA is still at $179,” she said.

4) CW also compared Tesla’s spending habits to other auto manufacturers. She noted that while General Motors and Dearborn-based Ford Motor Co each spent $4 billion on ads in 2018, Tesla spent nothing on advertising during the same period.
5) CW warned that if shareholders renege on Musk’s pay package, the public equity market could lose access to one of the most innovative companies in the world.

“If shareholders renege on Elon's pay package after 73% voted for it in 2018, the public equity market will lose access to one of the most innovative companies in the world, depriving retail investors.”

My Take: CW comments came amid another big Tesla shareholder, Ron Baron announced he supports ratifying EM's 2018 Pay Package by voting the proposals before the Tesla Shareholders Meeting. Read here: Ron Baron, big Tesla shareholder, supports Musk's 2018 Pay Package

Tesla share price has been trading sideways for the past 4 weeks defying all TA and FA forecast. Everyone is waiting for a trigger or catalyst perhaps on 13 June 2024 - the stock may go either way depending on the results of the voting on the 2 proposals.