Tesla stock drops 4.8% in US stock market as CEO Elon Musk secures shareholder nod for $1 trillion pay package

Billionaire Elon Musk-led electric vehicle manufacturer, Tesla Inc., stock price dropped 4.8% as the US stock markets opened on Friday, 7 November 2025, after the shareholders approved Chief Executive Officer (CEO) Elon Musk's $1 trillion pay package.

According to the data collected from MarketWatch, Tesla shares dropped 4.8% to hit an intraday low of $424.48 during the early market session on Wall Street, compared to $445.91 at the previous market close. As of 10:19 a.m. (EDT), the company's shares are trading 2.78% lower at $434.33, compared to $445.91, as per the stock market data.

Elon Musk's pay package approval

Mint reported earlier that Tesla's shareholders approved CEO Elon Musk's $1 trillion compensation package on Thursday, 6 November 2025, at the annual meeting in Austin, Texas. Tesla's trillion-dollar pay package approval to Musk marks the largest payout ever granted to a company executive.

As per the report, the pay package decision recieved 75% shareholders' support, which seeks to secure Elon Musk's commitment to Tesla as the company works towards boosting its artificial intelligence (AI) and robotic capabilities.

“I'd like to just give a heartfelt thanks to everyone who supported the shareholder votes. I super-appreciate it,” said Elon Musk after the announcement, cited in an AFP report.

What's Elon Musk's goal now?

Tesla's board of directors initially proposed that Elon Musk's $1 trillion pay package would be based on a contingency that the billionaire will have to grow the company's market capitalisation (M-Cap) to $8.5 trillion.

The company has assigned Musk a 12-stage goal in market capitalisation, where the CEO will have to achieve the $2 trillion M-Cap mark first, and then the expansion will be nine increments of $500 billion each and finally $1 trillion, which will in total amount to $8.5 trillion over the next few years.

Tesla will allocate 423.7 million performance-based restricted company stock, which amounts to 12% of the total outstanding shares of the EV maker.

Tesla share price trend

Tesla shares have given US stock market investors more than 198% returns on their investment over the last five years and over 44% in the last one-year period.

On a year-to-date (YTD) basis, the company's shares have gained 12.80% in 2025, but are down 1.16% in the last one-month period. According to the market data, Tesla shares have lost 5.99% in the last five market session on Wall Street.

Tesla stock hit its 52-week high level at $488.54, while the 52-week low level stands at $214.25, according to the data collected from the MarketWatch website. The company's market capitalisation (M-Cap) stood at ₹1.48 trillion as of the stock market session on Friday, 7 November 2025.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.