Tesla stock slip after Musk’s $1T pay package approval | Invezz

Tesla Shares Fall After Musk’s $1 Trillion Pay Approval

Tesla [finance:Tesla, Inc.] shares declined on Friday despite shareholders giving overwhelming approval to Elon Musk’s unprecedented $1 trillion compensation plan. Analysts suggested that investors are shifting their attention toward the company’s artificial intelligence and automation goals.

The stock dropped 5.04% to $423.40 in early trading but later recovered slightly to $429.44, still 3.69% lower overall. The reaction appeared surprising given the strong endorsement of Musk’s leadership, yet experts described it as a classic “buy the rumor, sell the news” response, where investors anticipate and trade ahead of announcements.

Shareholder Support and Targets

During Tesla’s annual meeting on Thursday, approximately 75% of voting shareholders backed Musk’s extensive equity-based compensation package, according to chair Robyn Denholm.

“Musk’s continued involvement is vital as Tesla moves from being an automaker to an AI and industrial automation leader,” said Robyn Denholm, emphasizing his history of meeting ambitious objectives.

The plan, consisting entirely of stock awards, could boost Musk’s ownership stake by 12% if Tesla achieves demanding performance milestones. These include pushing its market capitalization to $8.5 trillion, raising annual earnings 24 times to reach $400 billion, and advancing new ventures in robotics and self-driving technology.

Market Reaction and Outlook

Analysts highlighted that while the vote secures Musk’s significant influence for years to come, investor attention now shifts to Tesla’s ability to deliver on its next stage of innovation in automation and AI-driven industries.

Author’s summary: Shareholders endorsed Elon Musk’s record $1 trillion compensation at Tesla, but investor focus and market confidence hinge on progress in AI and automation growth goals.

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Invezz Invezz — 2025-11-07

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