Tesla (US:TSLA), Raspberry Pi (RPI) and Tesco (TSCO)
Tesla (US:TSLA) shareholders voted to approve Elon Musk’s pay package and to reincorporate the electric car maker in Texas.
The package of stock options, which at one point was valued at $56bn, has been a contentious issue due to concerns around the independence of the board. In January, a Delaware court voided the pay package and while this shareholder vote will not supersede that, it will help Musk as he tries to overturn the decision.
Tesla’s share price climbed 7 per cent in the past two days, after Musk posted on X that he was winning the vote by a large margin. “Shareholders at the end of the day knew that voting no would risk Musk potentially eventually leaving as CEO and the risk far overweighed the reward,” wrote Wedbush Securities analyst Dan Ives.
Tesla’s share price has fallen 27 per cent this year, after revenue dropped last quarter. Supporters of the company, which is still valued at 65 times its forward earnings, according to FactSet, are betting on its potential to crack autonomous driving. The share price reaction this week shows they think this is more likely with Musk at the helm. AS
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Raspberry Pi trading now open to all
After a conditional float on Tuesday, Raspberry Pi (RPI) shares have now hit the main market. Investors sent the company’s shares up to 472p, from the float price on Tuesday of 280p and conditional dealing surge to 385p.
“The quality of the interactions during the marketing process has underlined our belief that London has the right calibre and sophistication of investor to support growing, ambitious technology businesses such as Raspberry Pi,” said chief executive Eben Upton on Tuesday.
The company started out building low-cost credit card sized computers for hobbyists and educational purposes. It even developed its own operating system, which gives users access to their Raspberry Pi computer wherever they are in the world.
Although it started out as an educational company, Raspberry Pi now makes more of its revenue from industrial uses. Of the $266mn (£209mn) of revenue it made in 2023, 72 per cent came from industrial clients with the remaining 28 per cent from education. Geographically, its revenue is split fairly evenly between Europe, North America and Asia. AH
