Tesla shares fell more than 2% early Thursday, trading near $452 as investors prepared for one of the company's most important shareholder meetings in years. The stock had closed Wednesday at $462.07, one of only seven closings above $460, approaching its all-time closing high of $479.86 set in December 2024.
Over the last quarter, Tesla's stock surged 44%, driven by renewed enthusiasm about its ventures in artificial intelligence and robotics.
At the annual meeting held in Austin, Texas, shareholders will vote on multiple proposals with the potential to significantly impact Tesla's direction. The central focus is CEO Elon Musk’s proposed $1 trillion compensation plan, representing the largest executive pay package ever.
Musk’s pay package is linked to achieving multiple operational and market goals, including delivering 20 million vehicles within a decade, deploying one million robotaxis, and increasing Tesla’s market value from $1.5 trillion to between $2 trillion and $8.5 trillion.
Supporters believe the targets are highly ambitious but could create substantial value for shareholders if realized. Conversely, major investors such as Norway’s sovereign wealth fund and leading proxy advisory firms have criticized the proposal, considering it excessive.
Tesla's stock retreat reflects investor caution ahead of a pivotal shareholder vote on Elon Musk’s unprecedented $1 trillion compensation tied to ambitious growth milestones.