Delaware Court Ruling Blocking Musk's Pay Package Another 'Twilight Zone' Move, Wedbush Says

MT Newswires Live12-03

Delaware Chancellor Kathaleen McCormick's decision to once again block Tesla (TSLA) Chief Executive Elon Musk's multibillion-dollar pay package was another "Twilight Zone legal move," Wedbush said Tuesday in a note to clients.

Tesla and Musk will likely "fight this tooth and nail all the way to the Supreme Court in Delaware and then potentially to the Federal system as this remains a frustrating headache for Tesla, Musk, and its shareholders," the investment firm said.

"Musk is Tesla and Tesla is Musk," Wedbush said. "One way or another the board is getting Musk his pay package (and another long term one for the next decade) to secure Musk will be CEO of Tesla at least through 2030."

Tesla will "ultimately win this fight at the Supreme Court level given shareholders have approved this pay package twice" in an overwhelming way, the note said.

The investment firm kept Tesla's outperform rating and $400 price target.

Price: 352.15, Change: -4.94, Percent Change: -1.38

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