TSLA Stock In Spotlight As EV Maker Registers Shares Tied To Elon Musk’s 2018 Pay Package – Retail Sees Imminent Sell-Off

• The filing also covers any additional shares that could be created from stock splits, dividends, or similar changes that increase the total number of Tesla shares.
• Based on TSLA stock’s current price of around $375, the shares are valued at roughly $114 billion.
• The compensation plan was structured as a high-risk bet tied to Tesla’s growth.

Tesla Inc. (TSLA) shares edged 0.6% lower in pre-market trading on Monday after the carmaker filed a Form S-8 with the Securities and Exchange Commission (SEC) to register about 304 million shares of its common stock tied to the 2018 CEO Performance Award granted to Elon Musk.

Tesla’s latest SEC filing enables the issuance of shares linked to Musk’s performance award, a move that could eventually add to market supply. Despite bullish sentiment on Stocktwits, some retail traders expect near-term pressure if shares are exercised and sold.

What Tesla Filed And Why It Matters

Musk signed an agreement with the company on April 21, 2026, to exercise the award, and the shares will be issued under those terms. The filing also covers any additional shares that could be created from stock splits, dividends, or similar changes that increase the total number of Tesla shares.

Based on TSLA’s current price of around $375, the company's market capitalization is roughly $114 billion.

What Happens Next?

Registering the 2018 award shares means they can be freely sold once Elon Musk exercises his options. Those options expire in early 2028, and any exercise could lead to stock sales to cover taxes, similar to his moves in 2021.

His combined stakes across Tesla, SpaceX, and other ventures are reportedly valued at nearly $800 billion.

Musk’s Compensation Plan

The compensation plan, first approved by shareholders in 2012 and later expanded into the 2018 CEO Performance Award, was structured as a high-risk bet tied to Tesla’s growth. At the time, the company was valued at roughly $70 billion, but it needed to reach $650 billion for Musk to earn the full payout.

Tesla has since far exceeded that target, with its valuation now around $1.7 trillion.

The deal faced a major setback in 2024 when a Delaware judge struck it down over governance concerns, despite shareholder backing. However, the Delaware Supreme Court overturned that ruling in 2025, restoring the award.

Retail Traders Expect A Sell-Off

Retail sentiment on Stocktwits remained in the ‘extremely bullish’ zone over the past 24 hours, amid ‘high’ message volumes.

One user said, “Elon would be smart to unload a ton soon.”

Another user expects the stock to slump to $300.

Tesla shares have been under selling pressure lately, declining around 20% so far this year. The company delivered 358,023 vehicles in Q1, missing estimates for a second straight quarter. However, it beat expectations on both earnings and revenue, reporting $0.41 per share and $22.39 billion in sales.

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