Tesla (TSLA) stock fell more than 4% early Thursday morning ahead of the EV giant’s latest shareholder meeting. Tesla stock has been particularly volatile lately, with the stock price moving up or down more than 4% eight times in the past month. Investors are divided on the direction in which stock prices will move at the upcoming shareholder meeting, due to several factors.
Investors will decide whether to approve CEO Elon Musk’s $1 trillion pay deal, Tesla’s investment in xAI, and several other initiatives. The proposed salary agreement stipulates that Musk must meet a series of goals to receive the full $1 trillion compensation package. This milestone includes the delivery of 20 million Tesla vehicles, 10 million active fully self-driving subscriptions, the delivery of 1 million Optimus robots, and the commercial operation of 1 million robotaxis. In the lead-up to Thursday’s vote, Musk said his $1 trillion salary proposal was less about compensation and more about increasing his Tesla stake to about 25%.
Norway’s $1.9 trillion sovereign wealth fund, which owns a 1.2% stake in the company, plans to vote against CEO Elon Musk’s new pay package. “While we appreciate the tremendous value created under Mr. Musk’s visionary role, we are concerned about the size of the awards, dilution, and lack of risk mitigation for key personnel,” the fund said in a statement.
Whatever direction Tesla (TSLA) stock moves after this meeting, the prediction is uncertain. “Tesla has continued to rise since its (August) breakout,” said Katie Stockton, founder of Fairlead Strategies. Stockton said resistance is at the stock’s all-time high of $489. “Initial support is currently in the $415-$417 range,” the analyst added in a note to investors.
