Tesla Stock Falls Over 2% Ahead of Crucial Shareholder Meeting
Tesla shares slipped more than 2% in early Thursday trading as investors braced for one of the company’s most pivotal shareholder meetings in years. The stock traded around $452 after closing at $462.07 on Wednesday, marking just the seventh time it has ended above $460. It remains close to the all-time closing high of $479.86 set in December 2024.
Over the past three months, Tesla’s value has jumped 44%, fueled by renewed investor optimism around its progress in artificial intelligence and robotics.
Focus on Elon Musk’s $1 Trillion Pay Plan
The annual meeting in Austin, Texas, is expected to determine the direction of the company’s long-term vision. Shareholders will vote on several major proposals, the most notable being the approval of CEO Elon Musk’s unprecedented $1 trillion compensation plan—the largest executive pay package in corporate history.
“Musk’s proposed pay package links compensation to a series of operational and market milestones.”
To unlock the full payout, Tesla would need to deliver 20 million vehicles within ten years and deploy one million robotaxis. The company’s market capitalization would have to rise from its current $1.5 trillion to between $2 trillion and $8.5 trillion.
Investor Reactions and Challenges
Supporters view the targets as extremely ambitious, believing their achievement could deliver immense value to shareholders. Yet opposition has surfaced from several large investors, including Norway’s sovereign wealth fund and leading proxy advisory firms, which criticize the plan as overly generous.
Author’s summary: Tesla’s stock decline highlights investor tension ahead of a key vote on Elon Musk’s landmark $1 trillion compensation package, which could redefine the company’s future trajectory.