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 market crowded with inflated tech valuations, Tesla stands out. While the company holds significant potential, uncertainty surrounds whether its stock is a buy or a sell. This week, Tesla investors will vote on proposals to grant CEO Elon Musk a pay package that could make him the world's first trillionaire.

Stock Performance and Market Capitalization

Tesla shares (NASDAQ: TSLA) have risen about 16% year-to-date as of November 3, despite a volatile period. In April, amid tariff tensions, the stock fell more than 40% from the year's start. Since then, optimism has returned, pushing Tesla’s market capitalization close to $1.5 trillion.

Valuation and Pay Package

Tesla bulls view the current valuation as a baseline, with the board targeting an $8.5 trillion valuation for Musk to qualify for a pay package potentially worth $1 trillion. Musk, already the richest person globally, is seen by supporters as the driver behind this ambitious growth.

“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.

Dissenting Shareholder Views

Not all Tesla shareholders share this optimism about Musk’s compensation and the company's prospects.

Author's summary: Tesla's future hinges on investor confidence in Musk's vision and the company's ambitious valuation targets amid a turbulent market.

MoneyWeek — 2025-11-05