Support for Musk's Counteraction

In an opinion piece published on Monday, Jeff Yass, the Managing Director of Susquehanna International Group, voiced his support for Elon Musk's right to countersue following a recent court ruling. Yass's firm owns 3.94 million shares of Tesla (NASDAQ:TSLA), valued at over $1.5 billion.

Yass's commentary responds to a decision from the Delaware Court of Chancery, where Judge Kathaleen McCormick applied a "fairness standard" to a corporate transaction. Yass argues this precedent could enable a single investor to challenge a transaction that has been approved by the majority of shareholders. He believes Musk should have the option to countersue concerning his 2018 compensation plan.

At the time the deal was made, option traders estimated Musk's pay package to be worth about $3 billion. Following its announcement, Tesla's stock saw a slight increase.

Yass claims the Tesla board did not fairly compensate Musk, leveraging his optimistic outlook on the company's future. Since the agreement in 2018, Tesla's stock skyrocketed by 1,700%, which Yass views as an unexpected outcome.

He concludes that Musk is at least entitled to his promised compensation and possibly more based on the judge's reasoning, stating it is unjust to capitalize on Musk's optimism.

Other Tesla Developments

In recent updates, Tesla has made strides, with Morgan Stanley (NYSE:MS) maintaining an Overweight rating on its shares and raising its price target to $400. This adjustment comes in light of policy changes that could influence U.S. electric vehicle sales and underscores the need to retain leadership in autonomous vehicle technology. Tesla boasts impressive revenue of $97.15 billion and a market capitalization of $1.25 trillion.

CFRA has also increased Tesla's price target to $450 due to its promising outlook in autonomous driving. Tesla's sales reached an all-time high with global passenger xEV sales hitting 1.76 million units in October.

Analyst reviews vary: Guggenheim maintains a Sell rating due to risks affecting future growth targets, while BofA Securities upholds a Buy rating, citing Tesla's Optimus robot's potential to drive automation.

In other news, Elon Musk's AI venture, xAI, secured $6 billion in a funding round, announcing plans to expand its "Colossus" supercomputer facility to boost capacity ten-fold to over a million GPUs, potentially turning Memphis into a global AI hub.

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