Tesla rises 1% premarket, trading at $333.66

Tesla rises 1% premarket, trading at $333.66

Shares of Tesla Inc. (TSLA) were surging in early Monday trading, following the approval of Chief Executive Elon Musk's pay package by the company's board of directors. The package includes the award of $29 billion worth of stock, which was overwhelmingly approved by shareholders in June 2024 despite opposition from some institutional investors and proxy advisers [1].

The stock, which had fallen 7.1% over the past four days, spiked 2.8% in premarket trading as news of the approval was released. Before the pay package approval, the stock was up just under 1%. Musk will be awarded 96 million shares of Tesla common stock, valued at $29.05 billion based on Friday's closing price of $302.63. The shares will vest on August 3, 2027, provided Musk remains with Tesla as an executive [1].

This approval brings Musk's total holdings of Tesla shares to 506,794,076, with a valuation of $153.37 billion. Under the terms of the award, Musk must pay Tesla $23.34 per share of restricted stock when it vests. He will not be able to sell any of the vested shares until August 3, 2030 [1].

Even before the award, Musk was already the world's richest person, with a net worth of $352 billion as of Monday, according to the Bloomberg Billionaires Index. Tesla's stock has dropped 25.1% in 2025, while the S&P 500 index has gained 6.1% [1].

The stock's performance reflects the ongoing challenges Tesla faces, including a recent 7.1% drop amid a four-day losing streak. However, the approval of Musk's pay package has provided a significant boost to the stock, suggesting that investors remain optimistic about Tesla's future despite recent setbacks [1].

References:
[1] https://www.marketwatch.com/story/elon-musk-to-get-29-billion-richer-as-his-pay-package-is-approved-teslas-stock-jumps-a5c0d979