Is Tesla Stock a Buy or Sell Ahead of Musk Pay Package Vote?
In a market filled with inflated tech valuations, Tesla stands out. Despite uncertainties, the company shows significant potential. This week, Tesla investors will vote on a proposal to grant CEO Elon Musk a pay package that could make him the world’s first trillionaire.
Tesla shares (NASDAQ: TSLA) have risen about 16% in the year leading up to November 3, but the year has been volatile. At one point in April, amid tariff tensions, Tesla's stock fell over 40% from the year's start. However, optimism has since returned, pushing Tesla’s market capitalization near $1.5 trillion.
Valuation and Musk's Pay Package
Tesla bulls view the high valuation as only the beginning. The company’s board is considering an $8.5 trillion valuation target for Musk, the world's richest person, as part of his $1 trillion pay package eligibility.
“Getting Musk’s pay package approved will be a big step towards advancing Tesla’s future goals with the autonomous and robotaxi roadmap the first task at hand,” said Dan Ives, head of global technology research at Wedbush Securities.
Not all Tesla shareholders share this optimism.
Author's summary: Despite market swings, Tesla’s high valuation and Musk's ambitious pay package keep investors divided on the stock's future potential.