Tesla Stock Drops Over 2% Amid Key Shareholder Meeting
Tesla shares fell sharply by more than 2%, trading around $452 on Thursday morning. This movement followed a Wednesday close at $462.07, one of the few times the stock has surpassed $460, nearing its record closing high of $479.86 from December 2024.
Recent Performance and Investor Sentiment
In the last three months, Tesla's stock soared 44%, driven by growing enthusiasm for the company’s advances in artificial intelligence and robotics.
Annual Meeting and Major Proposals
During the annual shareholder meeting in Austin, Texas, investors will decide on several critical proposals shaping Tesla’s future. The most significant is the approval of CEO Elon Musk’s $1 trillion compensation package, the largest executive pay plan ever proposed.
Details of Musk’s Compensation Plan
- The package links payouts to ambitious operational and market goals.
- Tesla must produce 20 million vehicles within ten years.
- The company aims to deploy one million robotaxis.
- Market capitalization needs to grow from $1.5 trillion to between $2 trillion and $8.5 trillion.
Support and Opposition
Tesla’s ambitious targets "would generate immense shareholder value if achieved."
While supporters praise these goals, the compensation package faces opposition from major shareholders, including Norway’s sovereign wealth fund and leading proxy advisory firms, which criticize it as excessive.
Author's summary: Tesla's stock dipped as shareholders prepare to vote on Elon Musk’s unprecedented $1 trillion pay plan, dividing investors over its ambitious goals and fairness.