Tesla’s $1 Trillion Gamble: Will Shareholders Back Elon Musk?
So, here’s what’s happening — Tesla is making headlines again, and this time, it’s all about Elon Musk’s jaw-dropping potential pay package. Ahead of Tesla’s annual general meeting in Austin, Texas, the company has been campaigning hard to convince shareholders that Musk deserves a compensation deal worth up to one trillion dollars. Yes, trillion, with a “T.”
Tesla has even gone so far as to launch online ads and a website, votetesla.com, where board members Robyn Denholm and Kathleen Wilson-Thompson are featured praising Musk’s leadership, complete with uplifting background music. It’s almost like a mini movie trailer for Musk’s greatness. But not everyone seems ready to applaud.
The meeting is shaping up to be more of a referendum on Elon Musk himself than a routine shareholder event. Over the past few years, Musk’s political and personal behavior has made him one of the most polarizing figures in corporate America. He’s been using his platform on X (formerly Twitter), which he owns, to raise the stakes, saying the future of Tesla — and even civilization — could depend on this decision. He’s also rallied support from big names like Michael Dell, Cathie Wood, and his own brother, Kimbal Musk, who serves on Tesla’s board.
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But critics say this whole situation highlights how far Tesla has drifted from its core mission — selling electric vehicles. Ross Gerber, a former Tesla investor, pointed out how strange it is that a company struggling with declining sales is spending money to promote a pay package rather than its products.
Now, this isn’t a $1 trillion paycheck sitting in a bank account. Instead, the plan would grant Musk massive stock options — 423.7 million new shares — if he manages to raise Tesla’s market value from about $1.4 trillion to an incredible $8.5 trillion. To earn it, he’d also need to deliver a major expansion in Tesla’s self-driving “Robotaxi” program, putting a million of those cars into commercial use.
Of course, this isn’t the first time Musk’s compensation has raised eyebrows. A previous deal, worth tens of billions, was struck down earlier this year by a Delaware court for being too intertwined with Musk’s personal relationships. Still, Tesla’s board is back with an even bigger proposal, insisting that Musk is indispensable to the company’s success.
However, major investors and proxy advisers aren’t convinced. Firms like Glass Lewis, ISS, Norway’s sovereign wealth fund, and CalPERS — the largest public pension fund in the U.S. — have all urged shareholders to reject the package, calling it excessive and damaging to shareholder value.
Ultimately, the outcome may rest with Tesla’s vast base of retail investors, many of whom remain fiercely loyal to Musk. As one analyst put it, this upcoming vote could be one of the most significant moments in Tesla’s history. Whether shareholders see Musk as a visionary worth $1 trillion — or a distraction too costly to afford — will soon be revealed.
The trillion-dollar question now is simple: Will Tesla’s investors bet big on Elon Musk once again?
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