Tesla Stock Experiences Volatility Ahead of Crucial Shareholder Meeting
Tesla stock dropped more than 2% in early trading on Thursday, sliding to approximately $452. This came after closing at $462.07 on Wednesday, a rare finish above $460 and close to its all-time closing high of $479.86 set in December 2024. The stock has gained 44% over the past three months, driven by renewed investor enthusiasm about Tesla’s artificial intelligence and robotics projects.
Key Decisions at the Annual Meeting in Austin
During the annual shareholder meeting in Austin, Texas, attendees will vote on pivotal proposals that could significantly influence Tesla's trajectory. The most prominent item is the approval of CEO Elon Musk's proposed pay package, valued at $1 trillion—the largest executive compensation plan ever proposed.
Details of Musk’s Compensation Proposal
The package links Musk's earnings to ambitious operational and market goals:
- Delivering 20 million vehicles over the next decade
- Deploying one million robotaxis
- Increasing 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.
Opposition From Major Investors
Despite support, the compensation plan faces pushback from significant shareholders, including Norway’s sovereign wealth fund and well-known proxy advisory firms, who have criticized it as excessive.
Author's summary: Tesla’s stock shows signs of nervousness ahead of a key shareholder vote on Musk’s historic $1 trillion pay plan, sparking debate over its ambitious growth targets and potential impact.