<div id="readability-page-1" class="page"><div><div>A new pay package for Tesla Inc. TSLA CEO Elon Musk could alleviate one of the factors holding back the price of the electric vehicle company’s shares, according to Wedbush analyst Dan Ives in a new investor note.What Happened: The new pay package comes as Musk made comments over the weekend about his ownership stake in the electric vehicle company.&#34;Tesla filed a Form 8-k with the Board of Directors approving an award of 96 million shares of restricted stock under the company's 2019 Equity Incentive Plan,&#34; Ives said.The approval was done with the recommendation of a special committee.Ives said the long-term incentive program should motivate Musk as the CEO of Tesla as the company moves to becoming &#34;an AI-first company.&#34;The Wedbush analyst maintained an Outperform rating on Tesla with a $500 price target.Ives said parts of the new compensation plan were included in his July three-step list on what the Tesla Board of Directors should do to maintain guardrails and &#34;keep TSLA's most important asset.&#34;&#34;We believe this grant will now keep Musk as CEO of Tesla at least until 2030 and removes an overhang on the stock.&#34;Ives said the compensation issue has been a concern for shareholders once the &#34;Delaware soap opera began,&#34; referencing a judge overturning the compensation plan.Read Also: Musk Vs. Trump ‘Soap Opera Must End’: Tesla Analyst Shares 3 Key StepsWhat's Next: Ives said retaining Musk at Tesla is a must as the company focuses on the AI sector, which is highly competitive for talent.&#34;With the AI talent war now fully underway across Big Tech, we believe this was a strategic move to keep TSLA's top asset, Musk, would stay focused at the company with his priority being to bolster the company's growth strategy over the coming years,&#34; he said.Ives called the compensation plan an important strategic move by the Tesla Board of Directors to keep Musk as CEO and incentivize him to stay focused on the company.The framework of the plan to increase Musk's voting control removes an overhang on the stock, Ives added.&#34;While the groundwork is now in place for the next few years, it will be critical for the Tesla Board of Directors to get this long-term compensation strategy in place prior to the company's November 6th shareholder meeting, which would address the elephant in the room and remove a significant overhang on the stock.&#34;TSLA Price Action: Tesla stock is up 1.9% to $308.25 on Monday versus a 52-week trading range of $182.00 to $488.54. Tesla stock is down 18.7% year-to-date in 2025.<ul> <li>Tesla Q2 Earnings Highlights: Revenue And Earnings Fall Short; New Models Still Set For 2025–2026</li> </ul>Photo: Shutterstock</div></div></div>

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Tesla's new compensation plan for CEO Elon Musk aims to alleviate stock price concerns, according to Wedbush analyst Dan Ives. The plan includes an award of 96 million shares of restricted stock, which Ives believes will motivate Musk and secure his position until at least 2030. This strategic move is seen as essential for Tesla's growth, especially in the competitive AI sector. Ives maintains an Outperform rating on Tesla with a $500 price target, noting that the plan removes a significant overhang on the stock. Tesla shares rose 1.9% to $308.25 following the announcement.

- Tesla Inc. has approved a new pay package for CEO Elon Musk, which may positively impact the company's stock price, according to Wedbush analyst Dan Ives.  
- The package includes 96 million shares of restricted stock and aims to motivate Musk as Tesla transitions to an "AI-first company."  
- Ives believes this strategic move will retain Musk as CEO until at least 2030, addressing shareholder concerns and enhancing the company's growth strategy amid a competitive AI talent landscape.

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Tesla's Compensation Plan For Elon Musk Removes Overhang, Secures Company's 'Most Important Asset'