The world's richest man, Elon Musk, has secured a 1 trillion dollar pay package for himself from his electric vehicle giant, Tesla. The shareholders have reportedly approved the package. But this news has turned sour for investors as bears run over Tesla to the point the stock has crashed by nearly 5%. The EV giant has lost nearly $73 billion in market value, and Musk himself is bearing up to $12 billion decline in his net worth, as per the Bloomberg Billionaire's index.
Tesla Share Price:
At the time of writing, Tesla Inc. stock price nosedived by 4.86% to trade at $424.49 apiece on Nasdaq. The stock has touched an intraday low of $421.88 apiece in the early deals. The stock continues to see frenzy fall.
Toppled by the bears, Tesla's market capitalization declined by a steep $73 billion on the current price level. Tesla is currently the ninth largest company in the world with m-cap of $1.443 trillion.
Elon Musk $1 Trillion Pay Package:
As per reports, Tesla shareholders have likely approved their CEO's $1 trillion compensation package during the annual meeting in Austin, Texas. This marks the largest payout to CEO ever by a company.
Musk said, "I'd like to just give a heartfelt thanks to everyone who supported the shareholder votes. I super-appreciate it," as reported by an AFP report. It also highlighted that Musk bagged over 75% support from shareholders for his $1 trillion package.
As per the report, this package is approved to ensure that the SpaceX founder stays at Tesla for at least around seven and a half years. Not just that, Musk's shareholding in Tesla may potentially increase to over 25% from the 12% due to the $1 trillion package.
The package was initially introduced in September but received a lot of criticism. However, Musk had signaled he would exit Tesla or take a back seat if his shareholding in the EV player did not rise.
AFP reported that Tesla's chairman Robin Denholm urged shareholders to keep Musk for as long as possible with the company because Musk is seen as essential for Tesla's future. The chairman warned that the stock could drop if Musk exited.
However, since the approval has been reported, Tesla's shares are already grappling in a free fall.
Elon Musk Net Worth:
Due to the latest decline in Tesla stock, Musk's net worth has dropped by nearly $12 billion on November 7, as per Bloomberg Billionaires Index. But this correction in his wealth does not stops Musk from still holding the title of the richest man in the world. His net worth is currently around $461 billion, and it has increased by nealy $29 billion year-to-date despite the latest fall.
Tesla Stock Price Target:
According to TipRanks, based on 34 Wall Street analysts offering 12 month price targets for Tesla in the last 3 months. The average price target is $395.54 with a high forecast of $800.00 and a low forecast of $19.05. The average price target represents a -7.39% change from the last price of $427.11.
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