Tesla Stock Declines Over 2% Amid Key Shareholder Meeting
Tesla's stock experienced volatility early Thursday, dropping more than 2% to about $452 as investors prepared for the company's critical shareholder meeting. The stock closed Wednesday at $462.07, marking only the seventh time it surpassed $460 and remaining close to its December 2024 all-time closing high of $479.86.
Over the last three months, Tesla shares have risen 44%, driven by renewed enthusiasm for its artificial intelligence and robotics projects.
Annual Meeting and Major Proposals
At Thursday’s meeting in Austin, Texas, shareholders will vote on key proposals that could significantly influence Tesla’s future direction.
CEO Elon Musk’s Compensation Package
The primary focus is Elon Musk’s $1 trillion compensation plan, the largest executive pay package in history. This plan ties Musk’s earnings to ambitious operational and market targets, including:
- Delivering 20 million vehicles within ten years
- Deploying one million robotaxis
- Increasing Tesla’s market capitalization from $1.5 trillion to between $2 trillion and $8.5 trillion
“The goals are extraordinarily ambitious and would generate immense shareholder value if achieved.”
Despite some support, the proposal faces opposition from major investors such as Norway’s sovereign wealth fund and leading proxy advisory firms, which consider the package excessive.
Summary
Tesla's upcoming shareholder vote on Musk’s unprecedented $1 trillion pay plan has introduced uncertainty, leading to a notable decline in stock price despite the company’s recent strong performance.