Tesla Motors’s stock was lower early Thursday. There are a few things investors can look at to explain the move.
Shares of the electric-vehicle maker were down 3%.
California asset manager Calpers is opposing CEO Elon Musk’s $1 trillion pay package that Tesla shareholders are voting on, Bloomberg reported. That’s another thing to watch, but many Wall Street analysts expect the package to pass when votes are tallied at Tesla’s annual shareholder meeting on Nov. 6.
Failing to pass the package would create uncertainty for Tesla shareholders and likely irritate Musk.
Some AI stocks are also down after earnings. Meta Platforms, Inc. and Microsoft shares were down 12.4% and 1.6% in premarket trading. Alphabet shares, however, were up 2.1% after its earnings report impressed investors.
Tesla is seen as an AI play with investors optimistic that AI-trained robo-taxis and robots will generate significant earnings in the future.
What Tesla’s Thursday stock move isn’t likely related to is recalls. Tesla is recalling 6,197 model year 2024 Cybertrucks to fix a light bar issue, according to a notice posted by the National Highway Traffic Safety Administration.
Recalls typically don’t impact car stock prices for very long, if at all. They are part of doing business. There are exceptions if the repair cost is high or the safety issue is severe. Some 6,000 light bars don’t qualify as either.
Year to date, Tesla has recalled about 750,000 cars in 2025, according to NHTSA. The top dozen vehicle makers have recalled some 26 million cars.
Coming into Thursday trading, Tesla stock was up about 14% this year and up about 79% over the past 12 months.
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