Tesla Shares Extend Decline Amid Musk Pay Package Concerns and Tech Sell-Off
Tesla (TSLA) shares fell another 10% in pre-market trading, compounding Thursday's 6.6% drop. The decline follows investor unease over Elon Musk's newly approved $1 trillion compensation package—tied to ambitious Robotaxi and Optimus production targets—and a broader tech sector retreat.
Tesla AI chief Ashok Elluswamy's warning about 2026 operational challenges further pressured the stock. The sell-off mirrors profit-taking across AI-related equities after their recent rally, with market participants questioning stretched valuations.
Wedbush analyst Daniel Ives maintains bullish sentiment, emphasizing Tesla's AI potential despite compensation controversies. The stock's performance now hinges on execution of Musk's high-stakes automation bets amid turbulent market conditions.