1. Shareholders approved Musk's pay plan potentially worth $1 trillion. 2. Approval came despite objections from major investors like CalPERS. 3. Musk's plan hinges on achieving ambitious growth and product goals. 4. Current Tesla fundamentals show declining margins and demand. 5. Sky-high expectations could lead to stock punishments if unmet.
While Musk's compensation plan shows confidence, current fundamentals remain weak. Historical instances of ambitious targets not met have previously led to stock downturns.
The approval of Musk's pay plan is significant and reflects shareholder confidence, yet it could elevate risk if targets are unmet, impacting investor sentiment and stock prices.
Immediate investor reactions will depend on quarterly earnings and market perception. Short-term shifts in sentiment can heavily impact stock visibility.