Tesla Stock Declines Despite Musk’s $1 Trillion Pay Approval
Tesla shares fell even after shareholders approved Elon Musk’s unprecedented $1 trillion compensation plan. Analysts suggest the market is now shifting attention toward Tesla’s ambitions in artificial intelligence and automation.
Market Reaction
On Friday morning, Tesla’s stock dropped 5.04% to $423.40 before slightly recovering to $429.44, still down 3.69% overall. Analysts described the reaction as a classic case of investors “buying the rumor and selling the news,” implying the outcome had already been priced in.
Shareholder Approval
During Tesla’s annual meeting on Thursday, approximately 75% of shareholders voted in favor of Musk’s enormous equity-based pay plan, as confirmed by company chair Robyn Denholm.
Compensation Structure and Goals
The package is entirely stock-based and could increase Musk’s equity stake by 12% if Tesla achieves a series of demanding milestones. To realize the full value, Musk must:
- Boost Tesla’s market capitalization to $8.5 trillion
- Expand annual earnings 24 times to reach $400 billion
- Drive growth in robotics and autonomous driving sectors
“Elon’s continued involvement is vital as Tesla evolves from an automaker to a leader in AI and industrial automation,” said Denholm, praising his ability to achieve what many consider impossible.
Author’s Summary
Tesla shares slipped despite Musk’s record pay approval, reflecting cautious optimism as investors anticipate the company’s next phase in AI and automation.
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