Is Tesla Stock a Buy or Sell Ahead of Musk Pay Package Vote?
In a market filled with inflated tech valuations, Tesla stands out for its potential and volatility. Tesla investors are set to vote this week on proposals awarding CEO Elon Musk a pay package that could make him the world's first trillionaire.
Shares of Tesla (NASDAQ: TSLA) have risen about 16% in the year leading up to November 3, despite a turbulent period earlier in the year. In April, amid tariff concerns, Tesla's stock dropped over 40% from its start-of-year value. Since then, optimism has returned, pushing Tesla's market capitalization close to $1.5 trillion.
Tesla bulls view the high valuation as only the beginning. The company's board has set a target valuation of $8.5 trillion for Musk to qualify for a pay package potentially worth $1 trillion. Musk, already the world’s richest person, is seen by supporters as the key to reaching these ambitious goals.
“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.
However, not all shareholders share this optimism regarding Musk’s compensation and the company’s future direction.
Author’s summary: Tesla’s stock remains volatile yet promising as investors weigh the future potential tied to Elon Musk’s controversial pay package and ambitious company goals.