Though Tesla (TSLA) shareholders voted to reinstate Elon Musk's pay package on Thursday afternoon, some investors and analysts told Yahoo Finance they remain skeptical.
“The whole thing is a game of chicken and the shareholders blinked,” early Tesla investor Ibrahim AlHusseini said. “Fear of loss is a big motivator and Elon wielded that psychological mechanism to his benefit.”
The venture capitalist said he unenthusiastically voted in favor of the $56 billion package.
“The deal was set in 2018 when the milestones seemed virtually impossible and he met them," said AlHusseini, who first invested in Tesla in a Series C funding round. "He made a deal, he delivered, and this is his reward.”
Tesla's stock has been down nearly 30% year to date, and dropped roughly 2.5% on Friday. Now that the vote is over, AlHusseini said the stock should remain steady until its next quarterly earnings, where he forecasts that “shares will drop due to another miss on deliveries and margin.”
