Tesla Stock Dips Over 2% Amid Investor Unease
Tesla shares fell more than 2% during early trading on Thursday, reaching about $452 as investors prepared for a critical shareholder meeting. The stock had closed Wednesday at $462.07, one of only seven times it surpassed $460, and stayed close to its record closing high of $479.86 set in December 2024.
Recent Stock Performance and Growth
Over the last three months, Tesla’s stock surged 44%, driven by growing optimism about the company’s advances in artificial intelligence and robotics.
Key Shareholder Meeting in Austin
At the annual meeting in Austin, Texas, shareholders will vote on important proposals, including the approval of CEO Elon Musk’s unprecedented $1 trillion compensation plan. This plan links Musk's pay to a series of ambitious operational and market goals.
Details of Elon Musk’s Pay Package
- Tesla must deliver 20 million vehicles within ten years.
- Deployment of 1 million robotaxis is required.
- Market capitalization must grow from $1.5 trillion to between $2 trillion and $8.5 trillion.
The full payout relies on fulfilling all these milestones.
Reactions to the Compensation Proposal
Supporters praise the plan as highly ambitious and believe it could drive significant value for shareholders if achieved.
Several major investors, including Norway’s sovereign wealth fund and leading proxy advisory firms, have opposed the package, calling it excessive.
Summary: Tesla’s upcoming shareholder vote on Elon Musk’s historic compensation package has stirred market jitters amid the stock’s recent rapid rise and ambitious company targets.