Tesla stock slip after Musk’s $1T pay package approval

Tesla stock slips after Musk’s $1T pay package approval

Tesla shares declined even after shareholders approved CEO Elon Musk’s record $1 trillion compensation plan. Analysts suggest that investors are now refocusing on Tesla’s future in AI and automation technologies.

Market reaction

On Friday, Tesla’s stock dropped 5.04% to $423.40 but later rebounded slightly to $429.44, remaining down 3.69%. The fall appears paradoxical considering the strong shareholder endorsement of Musk’s leadership.

Analysts said the decline likely represents a “buy the rumor, sell the news” effect—a common phenomenon when investors have already priced in expected news.

Shareholder approval and targets

During Tesla’s annual meeting on Thursday, approximately 75% of shareholders voted in favor of Musk’s substantial equity-based pay package, according to company chair Robyn Denholm. The plan, composed entirely of stock grants, could raise Musk’s ownership stake by around 12% if Tesla achieves several demanding performance goals.

Performance milestones

Market capitalization target: $8.5 trillion
Annual earnings growth: 24-fold increase to $400 billion
Expansion into robotics and self-driving technologies

Leadership and future vision

Robyn Denholm commended Musk for repeatedly achieving what many thought impossible, describing his continued leadership as “vital” as Tesla evolves from a car manufacturer into a broader force in artificial intelligence and industrial automation.

Author’s Summary

Tesla’s stock slid despite Musk’s massive pay approval, highlighting investor caution as attention shifts toward the company’s AI-driven transformation and ambitious growth targets.

Invezz — 2025-11-07