Tesla Shares Drop 10% Amid Investor Concerns Over Musk’s $1T Pay Plan
Tesla's stock (TSLA) has slumped 10% this week following shareholder approval of Elon Musk's controversial $1 trillion compensation package. The electric vehicle maker's shares closed at $401 on Thursday, marking a 6% single-day decline—its steepest drop since summer 2023.
The compensation plan grants Musk 12 tranches of stock options contingent on Tesla hitting ambitious market cap and operational milestones over the next decade. While the package strengthens Musk's voting control, analysts remain divided on its long-term implications.
Wedbush's Dan Ives maintains an Outperform rating with a $600 price target, calling the pay package approval "a bright green light" for Tesla's AI and autonomous vehicle ambitions. "They're building out the AI future," Ives stated at Yahoo Finance's Invest event. "Autonomous [technology] will become 80% of Tesla's valuation."
The selloff reflects near-term investor unease despite bullish institutional sentiment about Tesla's technological roadmap. Market attention now turns to execution risks as Tesla pivots toward AI-driven growth initiatives.
