Tesla has introduced a new pay package for CEO Elon Musk, reminiscent of one from 2018. This has led to a slight increase in Tesla’s stock price, indicating investor approval. The new award requires Musk to stay in a senior leadership role at Tesla until at least 2028.

The award is meant to mirror a portion of Musk’s 2018 compensation, which is currently in legal limbo. Should the 2018 award be reinstated, the new award would be forfeited. Morningstar maintains a fair value estimate of $250 per share for Tesla, considering the company overvalued at current prices.

Last week, Tesla initiated testing of its robotaxi in the Bay Area, a positive development. However, full robotaxi service may not begin until 2028, later than management’s target of 2026. Investors are advised to wait for a stock pullback before considering entry.

Read more at Morningstar: Board Announces New Pay Package for CEO Elon Musk