Tesla Stock Drops Over 2% Amid Investor Uncertainty
Tesla's stock fell more than 2% to around $452 in early trading Thursday as investors prepared for a pivotal shareholder meeting. The stock had closed Wednesday at $462.07, one of the few times it surpassed $460, near its record close of $479.86 in December 2024.
Recent Performance and Investor Sentiment
Over the past three months, Tesla shares surged 44%, driven by optimism around the company's advancements in artificial intelligence and robotics.
Key Proposals at Annual Meeting
During Thursday's annual meeting in Austin, Texas, shareholders will vote on several impactful proposals. The most significant is CEO Elon Musk’s proposed $1 trillion compensation plan, the largest executive pay package ever proposed.
This plan ties Musk's compensation to ambitious targets, including:
- Delivering 20 million vehicles within ten years
- Deploying one million robotaxis
- Increasing Tesla’s market value from $1.5 trillion to between $2 trillion and $8.5 trillion
Support and Opposition
Supporters say the goals are incredibly bold and could create huge shareholder value if met.
However, 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 stock volatility reflects investor caution ahead of a critical shareholder vote on CEO Elon Musk's record-breaking compensation tied to ambitious future performance goals.
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