Tesla stock was the star of the Magnificent 7 in September, gaining 33% as Elon Musk appeared to be refocusing his attention on the EV maker.
On Wednesday, Tesla stock climbed 4%, closing at $442.79 — $50 shy of its all-time high. But what’s driving this momentum?
At the center of the discussion is Tesla’s board, asking investors to approve a new compensation plan for Elon Musk valued at nearly $975 billion. The proposal would reward the CEO with stock if Tesla hits certain milestones over the next decade. It would also consolidate Musk’s voting power — an element he has publicly demanded since early 2024.
The package, which could eventually deliver Musk about 425 million stock options, nearly 12% of Tesla’s outstanding shares, is pegged to an extraordinary $8.5 trillion market valuation. That equates to $2,700 per share, assuming no stock splits.
Musk himself addressed the controversy on X, insisting that the issue is less about personal compensation than influence. “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 wrote.
In short, Musk seeks the security to shape Tesla’s robotics and AI ambitions without the looming threat of shareholder activism. For him, the true prize is not the cash — it is control, especially as Tesla gears up for what he envisions as mass robot production in the coming decade.
However, Wall Street’s joy was short-lived. By Thursday, shares had swung lower, shedding 4.4%.
The volatility reflects a broader tension. On one hand, Musk’s lofty promises inspire promises. On the other, sobering fundamentals emerge — such as Tesla’s weakening foothold in Europe.
Fresh data from the European Automobile Manufacturers’ Association showed that Tesla sold just 8,220 vehicles in August, a 37% decline year over year. Meanwhile, BYD, China’s largest EV manufacturer, sold 9,130 cars.
This marked the second consecutive month BYD outperformed Tesla, underscoring how lower-cost competitors are chipping away at the U.S. leader’s dominance.
Tesla remains ahead in absolute sales across Europe, including the UK, Norway, and EFTA countries, with 14,831 cars sold versus BYD’s 11,455. However, while BYD’s growth rate soared by 216%, Tesla’s sales dipped by 22%.
For Tesla, the stakes are as high as ever: a trillion-dollar question of whether Musk’s influence will secure its future — or undermine it.
This article was written in cooperation with Tradingview