If Tesla Is the New Berkshire, Musk Would Be the New Buffett. Why the Stock Is Stalling.

Core Points - Tesla is increasingly being compared to Berkshire Hathaway, with CEO Elon Musk being likened to Warren Buffett of the tech sector [2][5] - At Tesla's recent annual shareholder meeting, shareholders approved a stock option package for Musk potentially worth $1 trillion over the next decade [5][9] - The focus for Tesla is shifting towards AI development, particularly in self-driving technology, with a bullish price target of $600 set by analysts [5][11] Tesla's Annual Meeting - The annual meeting in Austin, Texas, has drawn comparisons to Berkshire Hathaway's gatherings, with calls for larger venues to accommodate more retail investors [4][5] - Musk expressed gratitude to attendees, indicating the meeting's growing significance among Tesla fans [3][6] Compensation Structure - Musk's compensation structure is unconventional, as he does not receive a traditional salary, similar to Buffett, whose annual compensation is approximately $400,000 [7][8] - Musk's previous pay award was valued at about $56 billion, translating to roughly $8 billion per year over seven years, with current stock options worth around $130 billion [8] Stock Performance - Following the approval of Musk's pay package, Tesla's stock fell by 3.7% to close at $429.52, while the S&P 500 and Dow Jones Industrial Average saw slight gains [9][10] - Analysts suggest that the market's reaction may be due to the tendency to "buy the rumor and sell the news" regarding the pay package [10] Future Outlook - Analysts, particularly Dan Ives from Wedbush, believe that the focus on AI will unlock new earnings growth for Tesla, enhancing confidence in the company's future [11]