Gary Black Explains Why TSLA Stock Is Seeing Little Follow Through After Elon Musk's Historic $1 Trillion Pay Package Approval

• Black explained that the reason for relatively little movement in the company’s shares is that the hype has worn off.
• He argued that Tesla had become a “momentum stock” in 2025, with the movement in shares being driven by factors other than the company’s fundamentals, like sales, earnings, and valuation.
• On Thursday, Tesla shareholders approved Musk’s $1 trillion pay package, with more than 75% of them voting in favor of the award.

The Future Fund’s Managing Partner, Gary Black, on Friday explained why there is so little movement in Tesla Inc.’s (TSLA) stock after major positive events.

In a post on X, Black referred to the approval of Tesla CEO Elon Musk’s $1 trillion pay package. He explained that the reason for relatively little movement in the company’s shares is that the hype has worn off. “Yesterday’s favorable comp vote was widely expected,” Black said.

Tesla shares were down nearly 4% in Friday’s opening trade. Retail sentiment on Stocktwits around the company trended in the ‘neutral’ territory at the time of writing.

Momentum Stock

Black argued that Tesla had become a “momentum stock” in 2025, with the movement in shares being driven by factors other than the company’s fundamentals, like sales, earnings, and valuation.

“What drives stocks higher is higher short- and long-term earnings estimates.  We haven’t seen that with $TSLA all year,” Black said.

He recalled history, stating that Tesla bulls based their optimistic outlook on the company’s improving fundamentals. “Few of today’s TSLA bulls spend much time sharing their deep analytical insights,” Black added.

Volatile Year For Tesla Stock

The movement in Tesla’s stock in 2025 has been impacted by Musk’s politics. Since the beginning of the year through May, when Musk led the Trump administration’s Department of Government Efficiency (DOGE), Tesla shares experienced a decline of as much as 44%, before recouping some of the losses by the time he stepped down from the role at the end of May.

Tesla’s shares have made a significant recovery, gaining nearly 20% to date.

On Thursday, Tesla shareholders approved Musk’s $1 trillion pay package, with more than 75% of them voting in favor of the award. Prediction markets data showed there was more than a 90% probability of the proposal being approved.

TSLA stock is up 6% year-to-date and 44% over the past 12 months.

Also See: Alex Karp Says Palantir’s Most Important Mission Is To 'Prevent Wars': Report

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