Tesla Stock Dips Over 2% Amid Major Shareholder Meeting
Tesla's stock price fell more than 2% early Thursday, trading around $452 as investors prepared for a pivotal shareholder meeting. The previous day, the stock closed at $462.07, one of the few times it has surpassed $460, near its record closing high of $479.86 set in December 2024.
In the last three months, Tesla shares climbed 44% driven by optimism about its AI and robotics projects.
Key Proposals at Annual Meeting
The meeting in Austin, Texas, will feature votes on several initiatives that may significantly impact Tesla's future. The most notable is the approval of CEO Elon Musk’s $1 trillion compensation package, the largest in corporate history.
Musk's pay plan links compensation to achieving ambitious operational and market goals.
These goals include delivering 20 million vehicles over the next decade, deploying one million robotaxis, and raising Tesla’s market capitalization from $1.5 trillion to between $2 trillion and $8.5 trillion.
Support and Opposition
- Supporters highlight the plan's ambitious nature and potential to create great shareholder value.
- Critics, including Norway's sovereign wealth fund and major proxy advisers, have deemed the package excessive.
Critics have labelled the compensation package "excessive."
The outcome of this vote could be a defining moment for Tesla's leadership and strategic direction.
Author's Summary
Tesla's stock dipped ahead of a crucial shareholder vote on Elon Musk’s historic $1 trillion pay package, reflecting mixed investor reactions to ambitious company goals.