Tesla Stock Dips Over 2% as Investors Await Key Vote
Tesla shares slipped more than 2% in early Thursday trading, as investors prepared for one of the company’s most pivotal shareholder meetings in years. The stock traded around $452 after closing Wednesday at $462.07—its seventh close above $460—remaining close to the all-time high of $479.86 reached in December 2024.
Despite the dip, Tesla’s stock has climbed 44% in the past three months, driven by renewed enthusiasm for its artificial intelligence and robotics ventures. Expectations were high ahead of the company’s annual meeting in Austin, Texas, where shareholders were set to decide on proposals that could substantially influence Tesla’s trajectory.
The $1 Trillion Compensation Question
The central agenda item is a vote on CEO Elon Musk’s proposed $1 trillion compensation plan, the largest executive pay package ever presented. The payout would depend on achieving a series of operational and market performance goals.
- Tesla must deliver 20 million vehicles within ten years.
- The company must deploy one million robotaxis.
- Market capitalization must rise from the current $1.5 trillion to between $2 trillion and $8.5 trillion.
Supporters describe these goals as extremely ambitious, arguing they could produce massive value for shareholders if realized. However, the plan has drawn opposition from influential investors who call it excessive.
Several major investors, including Norway’s sovereign wealth fund and top proxy advisory firms, have criticized the proposal as disproportionate.
Investor Caution Ahead of Vote
The debate underscores growing unease among shareholders about balancing Musk’s visionary leadership with corporate governance and fairness in executive compensation.
Author’s summary: Tesla stock fell as investors awaited a critical vote on Elon Musk’s record $1 trillion pay plan, signaling tension between bold ambition and shareholder restraint.