Tesla Stock Drops Over 2% Amid Key Shareholder Meeting
Tesla's stock declined by more than 2% in early trading on Thursday, dropping to around $452. This followed a close of $462.07 on Wednesday, which was only the seventh time the price exceeded $460. The stock remains near its record closing high of $479.86 from December 2024.
Recent Performance and Market Optimism
In the last three months, Tesla shares have risen 44%, driven by growing excitement about the company's ventures in artificial intelligence and robotics.
Annual Shareholders Meeting Highlights
At the annual meeting held in Austin, Texas, shareholders face important decisions that might significantly influence Tesla's direction. The central issue is the approval of CEO Elon Musk’s $1 trillion pay package, the largest executive compensation plan ever proposed.
Details of Musk’s Compensation Plan
- The package links Musk's pay to ambitious operational and market goals.
- Targets include delivering 20 million vehicles in ten years and deploying one million robotaxis.
- Tesla’s market capitalization must increase from $1.5 trillion to between $2 trillion and $8.5 trillion for the full payout.
Reactions to the Proposal
“The goals are extraordinarily ambitious and would generate immense shareholder value if achieved.”
However, the plan faces opposition from major investors, including Norway’s sovereign wealth fund and several influential proxy advisory firms, which consider the package excessive.
Author’s summary: Tesla’s upcoming shareholder vote on Elon Musk’s historic $1 trillion pay package is causing market unease amid ambitious growth targets and mixed investor reactions.