Summary: Tesla (NASDAQ: TSLA) shares fell on Friday as Wall Street digested the historic shareholder vote to approve CEO Elon Musk’s new, performance‑based compensation plan. The package—headlined at $1 trillion (about $878 billion net after offsets)—passed with more than 75% support at Tesla’s annual meeting on November 6. TSLA closed down 3.68% at $429.52, extending a two‑day decline to roughly 7%. [1]
What moved TSLA on Nov 7
- Shareholders approved Musk’s record plan. Investors overwhelmingly backed the 10‑year award tied to aggressive milestones spanning market value, profits, autonomy, and robotics. The plan targets an $8.5 trillion market capitalization and envisions robotaxis and humanoid robots at scale. Reuters and AP both reported a vote share above 75%. [2]
- Stock fell on the news. Despite the vote, TSLA dropped on Friday as investors weighed governance optics, dilution mechanics, and execution risk embedded in the package. Reuters noted Tesla shares fell ~3.7% on the day while the broader market finished mixed. [3]
- An xAI tie‑up authorization did not pass. A shareholder proposal asking the board to authorize an investment in Musk’s AI company xAI received more “for” than “against” votes but failed because Tesla’s bylaws count abstentions as votes against; the board said it will “examine next steps.” (See official 8‑K tallies below.) [4]
Official vote results at a glance (Tesla 8‑K)
Tesla filed an 8‑K detailing vote counts for 14 proposals from the Nov. 6 annual meeting. Key outcomes:
- Proposal 4 – Approve the 2025 CEO Performance Award:For 1,892,235,822 | Against 564,940,908 | Abstain 12,227,846 → Approved. [5]
- Proposal 7 – Authorize Board investment in xAI (advisory):For 1,058,999,435 | Against 916,321,296 | Abstain 473,073,200 → Not approved due to abstentions counting as “against” under bylaws. [6]
- Proposal 12 – Elect directors annually:Approved (1,328,135,664 for / 1,118,920,427 against). [7]
- Proposal 6 – Eliminate supermajority voting:Not approved. [8]
- Other items: Executive compensation (advisory) and the amended 2019 equity plan were approved; proposals on a child‑labor audit and certain bylaw changes failed. [9]
Why it matters: The filing locks in the outcome and clarifies that, on xAI specifically, the vote does not authorize an investment, despite a raw plurality “for.” Separately, press coverage on Thursday and Friday highlighted the scale and conditions of Musk’s award (and that the headline $1T equates to about $878B net after offsets), framing the plan as both audacious and contentious. [10]
Why investors sold Tesla on the news
Governance & dilution optics. Several large institutions (e.g., Norway’s sovereign wealth fund) opposed the plan on size and concentration‑of‑power grounds; analysts expressed mixed views on the risk/reward, even while acknowledging Musk’s centrality to Tesla’s AI roadmap. [11]
Execution risk. The performance gates—$8.5T market cap, expanded autonomy, and scaled robotics—are extraordinary. Supporters frame the package as “pay for performance”; skeptics question achievability and whether the focus diverts attention from near‑term EV fundamentals. [12]
Macro backdrop. Friday’s broader tape was mixed: S&P 500 +0.13%, Dow +0.16%, Nasdaq −0.21%. Risk appetite has been whipsawed by macro headlines, and high‑beta tech names underperformed. Against that setting, Tesla’s idiosyncratic news met a softer risk tone. [13]
TSLA by the numbers (Nov 7, 2025 close)
- Close:$429.52 (−3.68% day‑over‑day)
- Range:$421.88–$439.36
- Two‑day move (Thu–Fri): roughly −7% (Fri close vs. Wed close)
- Volume:>100 million shares traded
(Official historical prints from Investing.com.) [14]
What Wall Street is saying
Early reactions span from “extreme but potentially justified if targets are met” to concerns about “unchecked power” and near‑term EV demand. In short, the Street sees the award as a high‑beta bet on Musk executing a pivot from “just an automaker” to a platform spanning AI, robotaxis, and humanoid robots. [15]
Beyond the vote: what to watch next
- Regulatory path for autonomy in China. Musk said Tesla expects full regulatory approval for FSD in China by early 2026; any concrete steps toward that timeline would be a major catalyst for the autonomy narrative. [16]
- Board follow‑up on the xAI vote. The board said it will examine next steps given the high number of abstentions; investors should watch for any revised proposal or clarified framework to manage conflicts of interest. [17]
- Operational checkpoints. Delivery trends, margin trajectory, and updates on automation/robotics progress will determine whether the performance tranches in the award are realistically in play. (See Tesla’s 8‑K exhibits and proxy materials for award mechanics.) [18]
Key takeaways for today (Nov 7)
- Historic compensation plan approved; exact tallies now on file with the SEC. [19]
- TSLA fell despite the win, as investors focused on governance optics and execution risk. [20]
- xAI authorization failed under Tesla’s abstention rule; the board will reassess. [21]
- Stock closed at $429.52, extending a two‑day slide to about 7%. [22]
FAQs: Tesla stock today (7 Nov 2025)
Did Tesla approve Elon Musk’s $1T pay package?
Yes. Shareholders approved the 2025 CEO Performance Award with ~1.89B votes “for” vs. 0.56B “against.” [23]
Did shareholders authorize Tesla to invest in xAI?
No. Although more votes were cast “for” than “against,” abstentions counted as “against” under Tesla’s bylaws, so the advisory proposal did not pass. [24]
Where did TSLA finish today?
TSLA closed at $429.52 (−3.68%); intraday range $421.88–$439.36. [25]
How did the broader market trade?
The S&P 500 (+0.13%) and Dow (+0.16%) edged higher, while the Nasdaq (−0.21%) slipped. [26]
Disclosure
This article is for informational purposes only and does not constitute investment advice. Do your own research and consider consulting a licensed financial advisor.
Sources: Tesla SEC filing (Form 8‑K), Reuters, Associated Press, and Investing.com historical data. [27]
Editor’s note: This story covers developments on Nov 6–7, 2025 and will not auto‑update after publication.
References
1. www.reuters.com, 2. www.reuters.com, 3. www.reuters.com, 4. ir.tesla.com, 5. ir.tesla.com, 6. ir.tesla.com, 7. ir.tesla.com, 8. ir.tesla.com, 9. ir.tesla.com, 10. www.reuters.com, 11. www.reuters.com, 12. www.reuters.com, 13. www.reuters.com, 14. www.investing.com, 15. www.reuters.com, 16. www.reuters.com, 17. ir.tesla.com, 18. ir.tesla.com, 19. ir.tesla.com, 20. www.reuters.com, 21. ir.tesla.com, 22. www.investing.com, 23. ir.tesla.com, 24. ir.tesla.com, 25. www.investing.com, 26. www.reuters.com, 27. ir.tesla.com
