Shares in Tesla (TSLA) fell almost 4% during Friday’s trading session amid a mass stock market decline. After Thursday’s Tesla shareholder meeting, Elon Musk was granted his $1T pay package. Musk, who is currently the richest person in the world, will receive 12 portions of shares as part of his compensation package if Tesla achieves specific goals over the course of the next ten years. Additionally, it would grant Musk more voting authority over the business.
If Tesla reaches a $2 trillion market valuation, the first portion of equity is distributed. The market capitalisation of Tesla is currently $1.54 trillion. Operational accomplishments are matched with awards linked to market value gains. If Tesla’s valuation rises by $500 billion, or up to $6.5 trillion, the next nine portions would be given out. If the market capitalisation increases by $1 trillion, Musk will receive the final two tranches. Hence, the market capitalisation must reach $8.5 trillion for Musk to receive the entire payout.
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Tesla stock rose after the vote results were announced on Thursday night, but fell in early trading on Friday. US stocks continued to skid on Friday, resuming a tech-led sell-off as investors weighed bearish consumer sentiment data and the odds that the AI investment boom will pay off.
Furthermore, Markets are also reacting to a bearish reading on consumer sentiment from the University of Michigan. Overall sentiment dropped to 50.3, about a 6% decline from October and the worst since 2022. While the latest job report from the Bureau of Labor Statistics isn’t public yet due to the government shutdown, private reports and forecasts also indicate a poor job market, which sparked a further stock decline.