Tesla Plunges 3.79% as Shareholders Approve $1 Trillion Musk Pay Package—What’s Next for TSLA?

Summary
• Tesla shareholders overwhelmingly approved Elon Musk’s $1 trillion pay package, contingent on ambitious milestones including a $8.5 trillion market cap.
• TSLA shares fell 3.79% intraday, hitting a low of $421.88 amid mixed reactions from analysts and retail investors.
• The stock’s 52-week range spans $214.25 to $488.54, with dynamic PE at 361.97, reflecting speculative valuations.

Today’s sharp decline in Tesla’s stock price follows the approval of Musk’s historic compensation package, which has sparked debate over its feasibility and long-term implications. With the stock trading near its 30-day moving average and key options contracts showing high leverage and volatility, investors are recalibrating strategies as the company navigates a pivotal juncture.

Musk's $1 Trillion Pay Package Sparks Volatility
Tesla’s 3.79% intraday drop follows shareholder approval of Elon Musk’s $1 trillion compensation package, which ties his rewards to ambitious targets like a $8.5 trillion market cap and 20 million vehicle deliveries. While the vote secured over 75% support, critics argue the package’s scale—requiring Tesla’s stock to rise sixfold—risks diluting shareholder value. Analysts like Mike O’Rourke of Jones Trading called the deal “unlikely to work out well,” while supporters like Dan Ives of Wedbush see it as critical to retaining Musk’s leadership. The stock’s decline may reflect profit-taking after a 44% annual gain, but the package’s long-term viability remains uncertain given Tesla’s recent struggles with sales and profitability.

Automotive Sector Splits as Ford Rises, Tesla Falls
While Tesla’s shares declined, the broader automotive sector showed mixed signals. Ford Motor (F) rose 1.46% intraday, outperforming Tesla’s drop. This divergence highlights divergent investor sentiment: Ford’s gains may reflect optimism over its electrification strategy, while Tesla’s fall underscores skepticism about Musk’s ambitious targets. The sector’s lack of cohesion suggests investors are prioritizing near-term execution over long-term vision, at least for now.

Options and ETFs for Navigating TSLA’s Volatility
• 30D MA: 443.316 (above current price)
• 200D MA: 337.757 (below)
• RSI: 51.86 (neutral)
• MACD: 9.45 (bullish), Signal: 10.91 (bearish), Histogram: -1.47 (bearish divergence)
• Bollinger Bands: Upper 471.27, Middle 444.26, Lower 417.26 (current price near lower band)

TSLA’s technicals suggest a short-term bearish trend but long-term bullish potential. Key support/resistance levels at 435.44–436.54 (30D) and 325.39–330.32 (200D) define critical thresholds. The stock’s 52-week low of $214.25 remains a distant floor, but near-term volatility is likely to persist as the market digests the pay package’s implications.

Top Options Picks:
• TSLA20251114P415 (Put):
- Strike: $415, Expiry: 2025-11-14
- IV: 54.11% (moderate), Leverage: 54.58% (high), Delta: -0.332 (moderate), Theta: -0.0076 (low decay), Gamma: 0.0106 (high sensitivity)
- Turnover: $4.78M (liquid)
- Payoff (5% downside): $14.01 per contract. This put offers high leverage and gamma, ideal for capitalizing on a potential breakdown below $415.

• TSLA20251114C440 (Call):
- Strike: $440, Expiry: 2025-11-14
- IV: 56.19% (high), Leverage: 46.01% (moderate), Delta: 0.389 (moderate), Theta: -1.66 (high decay), Gamma: 0.0108 (high sensitivity)
- Turnover: $18.05M (very liquid)
- Payoff (5% downside): $0 (out-of-the-money). This call is best for aggressive bulls expecting a rebound above $440, though theta decay is steep.

Action Insight: Aggressive short-sellers may target TSLA20251114P415 if the stock breaks below $415, while bulls should watch for a rebound above $440. High gamma in both contracts amplifies directional risk.

Backtest Tesla Stock Performance
The back-test is ready. Please review the interactive report below.Key statistics (quick view):• Total return: 5.9 % • Annualized return: 3.5 % • Max drawdown: 31.4 % • Sharpe ratio: 0.18 Explore the full interactive chart for trade-by-trade details, equity curve, and distribution of returns.

TSLA at a Crossroads: Watch 415 Support and 440 Resistance
Tesla’s 3.79% drop reflects mixed sentiment around Musk’s pay package, but the stock’s long-term bullish case remains intact. Key levels to monitor include the 415 support (Bollinger lower band) and 440 resistance (30D MA). A breakdown below 415 could trigger further selling, while a rebound above 440 may reignite optimism. Meanwhile, Ford’s 1.46% gain highlights sector divergence. Investors should prioritize liquidity and leverage in options strategies, given the stock’s elevated volatility. Watch for $415 breakdown or regulatory reaction.