Tesla stock rose on Wednesday, rebounding from a 2% decline in the prior session, as attention remained fixed on Chief Executive Elon Musk’s potential $1 trillion compensation package and fresh optimism from Wall Street analysts.
The S&P 500 rose 0.2%, the Nasdaq Composite added 0.3%, and the Dow Jones Industrial Average gained 102 points, or 0.2%.
Tesla stock advanced 2.9% to trade at $438.21.
Elon Musk defends $1T incentive package
A central focus for investors is Tesla’s board proposal to award Musk a massive performance incentive.
The plan would grant him about 425 million incentive-linked shares—roughly 12% of Tesla’s stock—if the company achieves an $8.5 trillion market capitalisation.
It’s not about “compensation”, but about me having enough influence over Tesla to ensure safety if we build millions of robots. If I can just get kicked out in the future by activist shareholder advisory firms who don’t even own Tesla shares themselves, I’m not comfortable with
That would translate into a stock price near $2,700, making the package potentially worth about $1 trillion.
On Tuesday, Musk addressed the proposal on X, his social-media platform, responding to calls for shareholders to approve the plan.
“It’s not about ‘compensation,’ but about me having enough influence over Tesla to ensure safety if we build millions of robots,” he said.
Musk added that if activist shareholder advisory firms could remove him in the future, “I’m not comfortable with that future.”
Analysts boost targets on AI and robotics bets
Tesla’s stock gains this week also followed bullish calls from analysts.
Piper Sandler’s Alexander Potter raised his price target to $500 from $400, maintaining a Buy rating after a trip to China.
While noting rising EV competition, Potter emphasised Tesla’s strength in artificial intelligence.
“Bottom line: Tesla remains our top idea for investing in autonomous vehicles and robotics,” he wrote.
His revised target implies Tesla is trading at nearly 200 times projected 2026 earnings, a level he argues is justified by the company’s aggressive push into artificial intelligence.
Days earlier, Baird’s Ben Kallo upgraded Tesla to Buy from Hold, lifting his target to $548 from $320.
September rally positions Tesla ahead of peers
Despite Tuesday’s dip, Tesla remains the best-performing member of the so-called Magnificent Seven tech giants this month.
The Tesla stock has gained over 30% in September, rising on 12 of the month’s 16 trading sessions.
In contrast, Amazon—the group’s weakest performer—has dropped 3.6% over the same period.
Bullish investors are eyeing fresh record highs, with Tesla’s AI-driven strategy underpinning renewed optimism even as debates continue over Musk’s unprecedented compensation plan.
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