Tesla Stock Falls After Musk’s $1T Pay Package Approval
Tesla’s share price declined on Friday, even after shareholders approved CEO Elon Musk’s unprecedented $1 trillion compensation plan. The stock dropped 5.04% to $423.40 before recovering slightly to $429.44, remaining down about 3.69% overall.
Market observers described the reaction as a typical “buy the rumor, sell the news” move, with investors shifting attention from short-term outcomes to Tesla’s longer-term ambitions in artificial intelligence and automation.
Shareholder Support and Plan Details
According to Tesla’s chair, Robyn Denholm, around 75% of votes at Thursday’s annual meeting backed Musk’s massive equity-based pay deal. The package consists entirely of stock awards, which could boost Musk’s ownership stake by 12% if certain targets are met.
- Achieving a market capitalization of $8.5 trillion
- Growing annual earnings 24 times to $400 billion
- Expanding into robotics and self-driving technology
Denholm called Musk’s continued involvement “vital” as Tesla evolves from a carmaker into a company focused on artificial intelligence and automation.
Analyst Perspective
Analysts suggest that while shareholder approval demonstrates confidence in Musk’s leadership, the stock’s short-term weakness highlights investor caution amid Tesla’s ambitious growth trajectory.
Author’s summary: Despite overwhelming shareholder backing for Musk’s record pay deal, Tesla’s share decline reflects shifting investor focus toward the company’s AI-driven future.