- Summary:
- Tesla's incumbent CEO may have a hard time being re-elected to the board, and this may constitute a significant headwind to the Tesla share price uptrend.
Tesla stock price is holding firm to the $1000 mark after rising again for yet another day, but internal disputes within the board may become a barrier to further upside. Bloomberg reports that Glass Lewis, a proxy advisory firm to Tesla has asked the company’s investors not to re-elect erstwhile Chairwoman Robyn Denholm to the board of the company on account of specific concerns regarding corporate governance.
Concerns cited in this report centre around CEO Elon Musk’s decision to finance the liability insurance of the directors and officers of the company. The company suspended payment of these liabilities as the premiums on these liabilities were considered too high. Glass Lewis indicated in its report quoted by Bloomberg that this presented a conflict of interest situation, with directors who were supposed to be independent now having a dependency on a CEO who was supposed to be under their direct oversight and supervision.
Institutional Shareholders Services Inc. had already presented a similar position earlier in the week. So far, Tesla’s share price has shaken off the news, but today’s upside move is a bit muted.
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Outlook for Tesla Share Price
Tesla share price is just above the $1000 mark, having gained 1.53% in a day that has seen light trading. The price is $15 shy of the all-time highs of $1027.48, and this area remains the price to beat for bulls.
A break above this price level allows Tesla to aim for the next potential resistance at 1101.29 (127.2% Fibonacci extension) from the XA wave of the previous harmonic pattern. 1183.76 is the 141.4% Fibo extension of the same XA wave and remains a potential target as well.
On the flip side, rejection at current levels or the all-time high allows for a pullback towards 943.34, with 912.32 and 864.01 beckoning on sellers as potential downside targets.