Tesla Stock Drops Over 2% Amid Investor Uncertainty
Tesla's stock opened lower on Thursday, falling more than 2% to about $452 as investors prepared for a critical shareholder meeting. The previous day, the stock had closed at $462.07, one of the few times it ended above $460, near its record close of $479.86 from December 2024.
Recent Performance and Optimism
Over the last three months, Tesla shares have climbed 44%, driven by renewed confidence in the company's artificial intelligence and robotics initiatives.
Key Shareholder Meeting Proposals
The annual meeting in Austin, Texas, will see shareholders voting on various proposals, with the most significant being CEO Elon Musk’s $1 trillion compensation plan—the largest in corporate history.
Musk’s proposed pay links compensation to operational and market milestones, requiring Tesla to deliver 20 million vehicles and deploy one million robotaxis within ten years, with its market value rising from $1.5 trillion to an estimated $2–8.5 trillion.
Investor Reactions
While supporters praise the plan as extraordinarily ambitious with significant potential shareholder value, it faces opposition from major investors like Norway’s sovereign wealth fund and influential proxy advisory firms, who consider the package excessive.
Summary: Tesla’s stock faces volatility ahead of a pivotal shareholder vote on Elon Musk’s historic $1 trillion pay plan, highlighting deep investor divisions about the company’s ambitious future targets.