10:07 AM EDT, 08/04/2025 (MT Newswires) -- Tesla's (TSLA) newly approved compensation plan for CEO Elon Musk removes a key overhang on the stock and strengthens leadership continuity through the company's next phase of growth, Wedbush said in a note Monday.

The new package grants Musk 96 million shares of restricted stock under Tesla's 2019 Equity Incentive Plan, according to Wedbush.

"We believe this grant will now keep Musk as CEO of Tesla at least until 2030 and removes an overhang on the stock. Musk remains Tesla's big asset," analysts said in the note.

Wedbush said the package is subject to Musk remaining in a senior role and includes an exercise price of $23.34 per share, consistent with the prior structure.

The firm added that if Delaware courts reinstate Musk's 2018 pay package, the new award would be viewed as interim and forfeited to avoid a "double dip."

Wedbush maintained its outperform rating on Tesla and a $500 price target.

Price: 311.83, Change: +9.19, Percent Change: +3.04