Tesla Stock Dips Over 2% Amid Upcoming Shareholder Meeting
Tesla's stock experienced a drop of more than 2% during early trading on Thursday, reaching approximately $452 per share. This followed a close at $462.07 on Wednesday, a level Tesla has only surpassed seven times, near its all-time closing high of $479.86 set in December 2024.
Recent Stock Performance
In the last three months, Tesla shares have surged by 44%, driven by renewed investor confidence in the company's artificial intelligence and robotics projects.
Key Agenda at Annual Meeting
At the annual shareholder meeting in Austin, Texas, crucial decisions await, including a vote on CEO Elon Musk's proposed $1 trillion compensation package—the largest executive pay plan in corporate history.
- The pay package links Musk's compensation to operational and market milestones.
- To receive the full payout, Tesla must produce 20 million vehicles within 10 years and deploy one million robotaxis.
- The company's market capitalization must increase from $1.5 trillion to between $2 trillion and $8.5 trillion.
Support and Opposition
"Supporters argue the goals are extraordinarily ambitious and would generate immense shareholder value if achieved."
However, the proposal faces opposition from key investors, including Norway's sovereign wealth fund and major proxy advisory firms, who consider the package excessive.
Author's Summary
Tesla's stock pullback reflects investor caution ahead of a pivotal shareholder vote on Elon Musk's historic $1 trillion pay plan tied to ambitious company milestones.