Is Tesla Stock a Buy or a Sell Ahead of Musk Pay Package Vote?
In a market with inflated tech valuations, Tesla stands out as a notable case. While the company holds significant potential, uncertainty raises the question: is Tesla stock a good buy or a sell right now?
This week, Tesla shareholders will vote on proposals to grant CEO Elon Musk a pay package that could make him the world's first trillionaire. Tesla’s shares (NASDAQ: TSLA) have risen about 16% year-to-date as of November 3, 2025, despite a volatile year for the electric vehicle (EV) manufacturer.
During the height of tariff concerns in April, Tesla's stock dropped over 40% from the year's start. However, investor optimism has returned, pushing Tesla’s market capitalization near $1.5 trillion.
Valuation and Musk’s Pay Package
Tesla bulls view the current high valuation as just the beginning. The company’s board is considering an $8.5 trillion valuation target tied to Musk’s pay package, potentially worth $1 trillion. Musk, already the world’s richest person, is seen by supporters as essential to driving Tesla to new heights.
“Getting Musk’s pay package approved will be a big step towards advancing Tesla’s future goals with the autonomous and robotaxi roadmap the first task at hand,” said Dan Ives, head of global technology research at Wedbush Securities.
Diverging Opinions Among Shareholders
Despite bullish sentiment from some, not all Tesla shareholders share the same confidence in the pay package or the company’s trajectory.
Stay Informed
- Tesla’s stock has seen both strong gains and sharp declines in 2025.
- The pay package vote could significantly impact both Musk’s wealth and Tesla’s future direction.
- The board’s ambitious valuation targets reflect high expectations for Tesla’s growth.
Author’s summary: Tesla faces a pivotal moment as investors weigh the risks and rewards ahead of Elon Musk’s record-setting pay package vote, reflecting both optimism and skepticism about the company’s future.