Tesla (TSLA) stock fell about 4% during Friday trading amid a massive decline in the stock market. After Thursday’s Tesla shareholder meeting, Elon Musk was given a $1 trillion compensation package. Musk, who is currently the world’s richest person, will receive 12 parts of the stock as part of his compensation package if Tesla meets certain goals over the next 10 years. It would also give Musk more voting rights over the business.
The first portion of the stock will be distributed if Tesla’s market valuation reaches $2 trillion. Tesla’s market capitalization is currently $1.54 trillion. Operational results are matched with awards related to increased market value. If Tesla’s valuation increases by $500 billion, or up to $6.5 trillion, the following nine portions would be distributed: Musk would receive the final two tranches if the market cap increases by $1 trillion. Therefore, Musk would need to reach a market cap of $8.5 trillion to receive his full payout.
Tesla shares rose after the results were announced Thursday night, but fell in early trading Friday. U.S. stocks continued to fall on Friday, resuming a tech-led selloff as investors weighed bearish consumer sentiment data against the potential for an AI investment boom to pay off.
Additionally, the market is reacting to a bearish analysis of consumer sentiment by the University of Michigan. Overall sentiment fell to 50.3, down about 6% from October and the worst since 2022. Although the latest Bureau of Labor Statistics employment numbers have not yet been released due to the government shutdown, private sector reports and forecasts also point to a weak job market, which led to further declines in stock prices.
