Tesla Stock Declines Over 2% Amid Investor Uncertainty
Tesla's stock fell more than 2% in early Thursday trading, settling near $452. This comes as investors prepare for one of the company’s most critical shareholder meetings in years. The previous day, Tesla shares closed at $462.07, one of the few times above $460, and near the record closing high of $479.86 set in December 2024.
Recent Surge Fueled by Optimism
In the last three months, Tesla shares have jumped 44%, driven by renewed excitement about its AI and robotics projects.
Key Vote at Annual Meeting in Austin
At Thursday’s gathering in Austin, Texas, shareholders will vote on several proposals that could significantly impact Tesla's future direction. The most prominent item on the agenda is CEO Elon Musk’s proposed compensation plan.
Elon Musk’s $1 Trillion Pay Package
The plan represents the largest executive pay proposal in corporate history. It links Musk’s compensation to ambitious targets including:
- Delivering 20 million vehicles within ten years
- Deploying one million robotaxis
- Raising Tesla’s market capitalization from $1.5 trillion to between $2 trillion and $8.5 trillion
Supporters argue the goals are extraordinarily ambitious and would generate immense shareholder value if achieved.
However, the proposal faces opposition from major investors such as Norway’s sovereign wealth fund and key proxy advisory firms, which consider the package excessive.
Author’s Summary
The Tesla shareholder meeting spotlights a historic CEO pay plan tied to bold growth goals amid investor caution and mixed reactions.