Tesla stock slip after Musk’s $1T pay package approval | Invezz

Tesla stock falls after Musk's $1T pay deal approval

Tesla shares slipped even after shareholders gave the green light to Elon Musk’s record-breaking $1 trillion compensation plan. Analysts suggested that investors may now be shifting focus toward Tesla's artificial intelligence and automation ambitions.

On Friday morning, the stock dropped 5.04% to $423.40, later recovering to $429.44 but still down 3.69%. Analysts noted that this reaction fits the classic “buy the rumor, sell the news” pattern, where investors adjust positions after an anticipated event.

Details of the shareholder vote

During Tesla’s annual meeting on Thursday, nearly 75% of shareholders backed the pay package, according to company chair Robyn Denholm. She described Musk's continued leadership as essential during Tesla’s transformation into a broader high-tech company.

“His continued involvement is vital as Tesla transitions from an automaker to a leader in artificial intelligence and industrial automation,” said Robyn Denholm.

Targets and expectations

The compensation plan is structured entirely in stock grants. If performance goals are met, Musk’s ownership could rise by 12%. To achieve the full payout, Tesla must boost its market capitalization to $8.5 trillion, raise annual earnings to $400 billion — a 24-fold increase — and accelerate growth in robotics and self-driving technologies.

Author’s summary: Despite shareholders’ approval of Elon Musk’s record pay package, Tesla’s stock fell as traders looked beyond the news toward the company’s future in AI and automation.

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Invezz Invezz — 2025-11-07

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