Is Tesla stock a buy or a sell ahead of Musk pay package vote?

Is Tesla Stock a Buy or a Sell Ahead of Musk Pay Package Vote?

In a period of inflated tech valuations, Tesla remains a major standout. The company continues to attract intense investor attention due to both its potential and volatility. This week, Tesla shareholders will vote on proposals to grant CEO Elon Musk a compensation package that could make him the world's first trillionaire.

Stock Performance and Market Fluctuations

Shares of Tesla (NASDAQ: TSLA) have risen about 16% as of November 3, despite a turbulent year. During the tariff-driven uncertainty in April, the stock had dropped more than 40% since January. Renewed investor optimism has since lifted Tesla’s market capitalization close to $1.5 trillion.

Debate Around Valuation

Supporters see Tesla’s high valuation as only the beginning. The board set an ambitious $8.5 trillion target tied to Musk’s enormous potential pay package, worth up to $1 trillion. They believe that Musk’s leadership is essential to reaching those new milestones.

“Getting Musk’s pay package approved will be a big step towards advancing Tesla’s future goals with the autonomous and robotaxi roadmap the first task at hand,” said Dan Ives, head of global technology research at Wedbush Securities.

Investor Division

While bullish investors have faith in Musk’s vision, others remain uncertain about whether the proposed compensation aligns with shareholder value. The vote could significantly influence Tesla’s strategic direction and long-term investor sentiment.

Author’s Summary

Tesla’s upcoming shareholder vote on Elon Musk’s record-breaking pay plan highlights both investor confidence in his leadership and ongoing concerns over the company’s high valuation.

MoneyWeek — 2025-11-05