Elon Musk's trillion-dollar Tesla pay package in danger
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What Happens To Tesla Stock If Investors Make This Shocking Decision?
Tesla TSLA investor attention is on the annual shareholder meeting Thursday and the fate of CEO Elon Musk's $1 trillion pay deal. Musk and Tesla have been busy drumming up support, with the Tesla board and Musk himself hinting that he could leave if investors vote down the proposal.
TSLA stock dropped 73.6% from a peak of $409.97 on 4 November 2021 to $108.10 on 3 January 2023, compared to a peak-to-trough decline of 25.4% for the S&P 500. Since then, the stock rose to a maximum of $479.86 on 17 December 2024 and is currently trading at $452.42
First, Tesla is a proven EV maker with worldwide name recognition and unparalleled access to capital given its $1.4 trillion market cap. This is a big deal in an industry rife with financial failures. Over the past decade alone, at least 30 EV start-ups have gone under.
Tesla posted record quarterly revenue but its profit came in below Wall Street's expectations. The stock fell 4% after hours during the analyst call.
Tesla's after-hours stock drop in the wake on Wednesday could simply reflect that "traders found no immediate catalysts in the lackluster earnings report to push the name towards fresh highs," according to Jake Behan,
The company's plans to aggressively ramp up production are based on the assumption that its unsupervised full self-driving solutions will become a reality.
While Tesla's Q3 2025 was decent, challenges are ahead with tax incentives gone. Click here to read why TSLA stock is a Strong Sell.
The options over-under on how much Tesla's stock will move, in either direction, after earnings is a lot less than what investors may be used to in recent years. Straddles, which are [pure volatility
Tesla TSLA stock fell 0.6% on market weakness and Calpers opposition to Musk's pay package, not the minor Cybertruck recall.