Tesla stock slips after Musk’s $1T pay approval
Tesla’s stock fell even after shareholders approved Elon Musk’s record $1 trillion compensation plan. On Friday morning, shares declined 5.04% to $423.40 and later recovered slightly to $429.44, still 3.69% lower for the day.
Market analysts suggested the dip might reflect a common “buy the rumor, sell the news” reaction, as investors had already priced in the expected outcome of the vote. Despite broad confidence in Musk’s leadership, attention is now shifting toward Tesla’s ambitions in artificial intelligence and automation.
Shareholder approval and conditions
During Tesla’s annual meeting on Thursday, around 75% of shareholders supported Musk’s equity-based pay package, according to company chair Robyn Denholm. The plan, composed entirely of stock awards, could increase Musk’s stake by 12% if Tesla achieves a series of major performance milestones.
- Raise Tesla’s market capitalization to $8.5 trillion
- Boost annual earnings 24 times to $400 billion
- Expand into robotics and self-driving technologies
Denholm highlighted Musk’s proven ability to achieve the improbable and described his continued leadership as “vital” to Tesla’s evolution into an AI and automation powerhouse.
Analyst perspective
Analysts believe the market’s initial reaction hides longer-term optimism, as the approval underscores shareholders’ trust in Musk’s vision to steer Tesla beyond electric vehicles into broader technology sectors.
Author’s summary: Despite shareholder approval of Elon Musk’s massive pay deal, Tesla shares dropped as investors refocused on the company’s push into AI and automation.
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