Tesla Stock Drops Over 2% Ahead of Crucial Shareholder Vote
Tesla shares slipped more than 2% in early Thursday trading as investors awaited one of the company’s most significant shareholder meetings in years. The stock traded near $452 after closing at $462.07 on Wednesday — only the seventh time it finished above $460 — staying close to its record high of $479.86 reached in December 2024.
Over the past three months, Tesla shares have climbed 44%, driven by renewed confidence in its artificial intelligence and robotics initiatives. The momentum, however, faced temporary turbulence ahead of the company’s annual meeting in Austin, Texas.
Key Proposals for Shareholders
At the meeting, investors are set to decide on several proposals that could influence Tesla’s long-term direction. The most anticipated vote concerns the approval of CEO Elon Musk’s unprecedented $1 trillion compensation package, the largest in corporate history.
“Musk’s proposed pay package ties compensation to a series of operational and market milestones.”
To secure the full payout, Tesla must achieve ambitious targets: deliver 20 million vehicles within the next decade, deploy one million robotaxis, and raise its market capitalization from the current $1.5 trillion to between $2 trillion and $8.5 trillion.
Divided Investor Reactions
Supporters argue these goals, though extremely demanding, could yield substantial value for shareholders if met. However, several influential investors—including Norway’s sovereign wealth fund and leading proxy advisory firms—have criticized the plan as excessive and disproportionate.