Tesla Stock Declines Over 2% Amid Shareholder Meeting
Tesla stock fell more than 2% during early trading on Thursday, dropping to about $452 as investors prepared for a pivotal shareholder meeting. The stock had closed at $462.07 on Wednesday, one of only seven times it surpassed $460, and remained close to its all-time closing high of $479.86 recorded in December 2024.
Recent Stock Performance and Investor Sentiment
In the last three months, Tesla shares rose 44%, driven by optimism surrounding the company's advancements in artificial intelligence and robotics.
Key Agenda at Annual Shareholder Meeting
The meeting, held in Austin, Texas, will address several proposals with potential to significantly influence Tesla's direction. The most critical item is the vote on CEO Elon Musk’s $1 trillion compensation plan, the largest ever proposed in corporate history.
Musk's Compensation Package Details
- The package links pay to ambitious operational and market targets.
- To earn the full amount, Tesla must deliver 20 million vehicles in ten years.
- Tesla must deploy one million robotaxis.
- Market capitalization must increase from $1.5 trillion to between $2 trillion and $8.5 trillion.
Reactions from Investors
“The goals are extraordinarily ambitious and would generate immense shareholder value if achieved.”
However, some major investors including Norway’s sovereign wealth fund and leading proxy advisory firms have criticized the package, calling it excessive.
Author’s summary: Tesla’s stock dipped amid a critical shareholder vote on Elon Musk’s unprecedented $1 trillion pay plan, reflecting mixed investor confidence in the company’s ambitious growth targets.