Tesla Ahead of Shareholder Meeting: Buy, Sell or Hold TSLA Stock?

Core Insights - Tesla is facing a pivotal moment as shareholders vote on CEO Elon Musk's proposed $1 trillion performance-based pay package, which has sparked significant debate regarding its size and necessity [1][2][3] Group 1: Musk's Pay Package - The proposed pay package is contingent on Musk achieving ambitious targets, including increasing adjusted EBITDA to $400 billion by 2035 and reaching a market value of $8.5 trillion [2] - Major investors, including Cathie Wood and Michael Dell, support Musk's pay, while critics, such as Norway's sovereign-wealth fund, express concerns over potential share dilution and the company's reliance on Musk [3][4] - The board defends the package, emphasizing that Musk's leadership is crucial for Tesla's success and profitability in the EV market [5] Group 2: Tesla's Current Position - Tesla delivered 497,099 vehicles in Q3 2025, marking a 7.4% year-over-year increase, attributed partly to buyers taking advantage of a federal EV tax credit [6] - However, sales in October showed significant declines in Europe, with drops of 89% in Sweden and 86% in Denmark, indicating demand pressures from competition and an aging product lineup [8] - Tesla's Energy Storage business is performing well, achieving record deployments and becoming the company's most profitable division [9] Group 3: Future Prospects - Tesla's robotaxi initiative is expanding, with plans to pilot in multiple metro areas by year-end, leveraging existing self-driving hardware [10] - Upcoming product launches, including the Cybercab and Tesla Semi, are expected in 2026, with the company maintaining a strong financial position, ending Q3 with over $41 billion in cash and investments [11] - Despite a year-to-date share price increase of around 10%, Tesla's valuation remains high compared to competitors, with a forward price-to-sales ratio of 13.89 [12][14]