Tesla Shares Drop 6% After Elon Musk’s $1T Bonus Approval

  • Elon Musk’s $1 trillion compensation plan was approved at the recent Tesla shareholder meeting.
  • Tesla shares have declined sharply since the approval, with a 6% drop in one day and a 10% decline over the week.
  • The pay package grants Musk 12 portions of shares over ten years if Tesla meets specific goals, increasing his voting power.
  • Analysts remain optimistic about Tesla’s autonomous and Ai technology future despite recent stock declines.
  • Wall Street holds a mixed stance on Tesla stock with a consensus Hold rating and an average price target suggesting slight downside risk.

Elon Musk received approval last week for a $1 trillion compensation plan during a Tesla shareholder meeting. This package awards Musk 12 portions of shares over the next ten years if Tesla meets particular milestones. It also increases his voting control within the company.

- Advertisement -

Since the announcement, Tesla (TSLA) shares have fallen sharply. The stock closed Thursday trading at just above $401, marking a 6% drop in 24 hours, its largest single-day decline since the previous summer. Tesla’s stock has also declined about 10% over the past week and nearly 8% during the last 30 days.

Despite recent declines, analysts like Wedbush’s Dan Ives remain bullish on Tesla’s long-term outlook. Speaking at the Yahoo Finance Invest event, Ives described the pay plan approval as a “bright green light” for Tesla’s Artificial Intelligence (AI) and autonomous technology development. He predicts Tesla will control roughly 80% of the autonomous vehicle sector within the next decade and set a Street-high $600 price target.

On Wall Street, Tesla holds a Hold consensus rating, based on 14 Buy, 10 Hold, and 10 Sell ratings issued over the last three months. After a 38.38% increase in share price over the past year, the average analyst price target stands at $382.54, implying a potential downside risk of about 4.6%. At the time of reporting, Tesla stock trades near its 52-week high and remains above its 200-day simple moving average.

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

- Advertisement -

Previous Articles:

- Advertisement -

Latest News

Strategy shifts Bitcoin buy plan to focus on preferred stock

Strategy is shifting its capital strategy to fund Bitcoin purchases from common stock sales...

Apple Releases Updates for Exploited Zero-Day Flaw

Apple has released emergency security updates for all major platforms including iOS, macOS, and...

Ethereum Staking Hits New Record: 36.8M ETH Locked

Ethereum's staking ratio has reached a new all-time high, surpassing 30% of its total...

Hoskinson: Midnight Mainnet March, Not for ‘Privacy Maxis’

Cardano founder Charles Hoskinson dismissed targeting privacy-focused communities for Midnight's launch.The new privacy blockchain...

Intel Rebounds 2.5% on AI Bet, Earnings Beat

Intel stock jumped 2.5% to $48.29, rebounding from a recent sharp decline driven by...

Must Read

7 Best Audiobooks on Cybersecurity

Cybersecurity has become an essential topic in our increasingly digital world. As technology evolves and becomes more integrated into our daily lives, the importance...
🔥 #AD Get 20% OFF any new 12 month hosting plan from Hostinger. Click here!