Tesla Stock Surges as Board Approves $1T Musk Pay Package for AI Focus
Tesla's stock has been on a remarkable rollercoaster ride, recently surging to near record highs, but the future of its sales is uncertain due to the impending expiration of EV tax credits. Meanwhile, the company's board has approved a substantial pay package for Elon Musk to steer Tesla towards an AI-focused future.
Tesla's stock has been on a remarkable run, climbing nearly 100% since April 8, 2025, and surging over 30% in September alone. It's now trading at about $440, closing in on its record high of $479.86. This impressive performance has placed Tesla among the top 10 performers in the S&P 500 for September. Retail investors, buoyed by Tesla's potential beyond electric vehicles, have driven this rally.
Wedbush analyst Dan Ives has boosted his price target for Tesla stock to $600, citing the company's entry into the 'next stage of its AI autonomous path'. Elon Musk, who currently serves as CEO, predicts that 80% of Tesla's future revenue will come from AI robots. However, analysts caution about softening EV demand and intense competition in the electric vehicle market.
The EV tax credits, which have been a significant driver of Tesla's sales, are set to expire on October 1, 2025. This could potentially dampen Tesla's sales in the coming months. To navigate this and future challenges, Tesla's board has approved a $1 trillion pay package for Musk to transform the company into an AI-focused entity.
Tesla's stock has experienced a remarkable rally, fueled by investor enthusiasm and the company's potential in AI. However, the expiration of EV tax credits could impact sales. With a substantial pay package approved for Elon Musk, Tesla is poised to shift its focus towards AI, aiming to secure its future in the rapidly evolving tech landscape.
