Tesla Shares Decrease as Court Voided Elon Musk's Pay Package

Tesla's shares experienced a decline on Wednesday following a 0.4% increase to $191.59 the previous night.

Pay Package Nullification and Implications

Late on Tuesday, a Delaware court ruled that Tesla CEO Elon Musk's pay package was invalid. The package had granted him about 300 million options that would vest based on meeting specific performance milestones. This ruling essentially nullified Musk's $55.8 billion pay package, potentially setting a precedent for other companies.

Pre-market Trading Performance

Prior to Wednesday's trading, Tesla stock dropped by 3% in pre-market trading. Additionally, Nasdaq Composite futures saw a decrease of 0.7%. Over the past month, Tesla shares have fallen by 19.7%, while the S&P 500 and Nasdaq Composite have risen by 4.6% and 6.3%, respectively.

Comparison to Competitors and Trading Volume

Tesla's stock has notably decreased from its 52-week high of $299.29, which it achieved in the previous summer. Despite this, the stock was outperforming some of its competitors, with Lucid experiencing a 0.3% decline to $3.45, while GM saw a 0.1% increase to $38.09 in pre-market trading. NIO fell 2% to $5.67, and BYD also experienced a 2% decrease in Hong Kong trading.

Furthermore, Tesla's trading volume at the close of Tuesday was 105.7 million shares, which remained 12 million below its 50-day average volume of 117.7 million.