Tesla Stock Declines Over 2%
On Thursday, Tesla shares fell more than 2%, trading around $452 after closing at $462.07 on Wednesday. This marked only the seventh time the stock closed above $460, remaining near its record high of $479.86 from December 2024.
Recent Performance and Investor Sentiment
Over the last three months, Tesla's stock surged 44%, driven by renewed enthusiasm for its ventures in artificial intelligence and robotics.
Annual Shareholder Meeting Highlights
At the annual meeting held in Austin, Texas, shareholders faced key votes that could shape Tesla’s direction. Central to the discussion was CEO Elon Musk’s proposed $1 trillion compensation package — the largest in corporate history.
Details of Musk’s Compensation Proposal
The package links Musk’s pay to ambitious targets, requiring Tesla to:
- Deliver 20 million vehicles within ten years
- Deploy 1 million robotaxis
- Increase market capitalization from $1.5 trillion to between $2 trillion and $8.5 trillion
Support and Opposition
Supporters claim these milestones are highly ambitious and could deliver substantial shareholder value if met.
The proposal faces criticism from significant investors like Norway’s sovereign wealth fund and major proxy advisory firms, who consider the pay plan excessive.
Author's summary: Tesla’s stock dropped amid investor caution as shareholders weigh CEO Musk’s historic $1 trillion pay package tied to bold operational and market growth targets.