Tesla Stock Is Rising. Elon Musk Speaks Out on $1 Trillion Pay Package

Dow Jones
Yesterday

Tesla stock was rising 2% in morning trading, on course to bounce back from a 2% fall in the previous session.

Investors are constantly monitoring a range of factors when it comes to Tesla shares, but one key area is CEO Elon Musk's potential $1 trillion pay package. The electric-vehicle maker's board outlined the compensation proposal earlier this month to "motivate" the billionaire and investors very much want him to stay and remain focused on the company.

Musk weighed into the debate over his pay on his social-media platform X Tuesday, in response to a user urging shareholders to vote in favor of the proposal.

"It's not about 'compensation,' but about me having enough influence over Tesla to ensure safety if we build millions of robots," he said in a post. "If I can just get kicked out in the future by activist shareholder advisory firms who don't even own Tesla shares themselves, I'm not comfortable with that future," he added.

If approved, Musk's 2025 performance incentive would grant him about 425 million incentive-laden stock, roughly equivalent to 12% of Tesla's stock outstanding. All the options vest if Tesla achieves an $8.5 trillion market capitalization. That would put Tesla stock at, very roughly, $2,700 a share and make the 2025 performance award worth $1 trillion, Barron's previously reported.

Despite Tuesday's drop, the shares are having a good September -- up 28% having gained on 12 of the month's 16 trading days so far. It's the best-performing member of the so-called Magnificent Seven group of megacap stocks over that period. Conversely, shares of Amazon -- the worst performer of the exclusive club -- are down 3.6% for the month.

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