Tesla enters a historic moment in its corporate history. Ahead of Thursday’s annual general meeting, the company has launched an intensive campaign to convince shareholders that Elon Musk deserves a $1 trillion pay package. Digital ads promote his achievements, while Votetesla.com features board chair Robyn Denholm and director Kathleen Wilson-Thompson praising Musk as triumphant music plays. Shareholder opinion remains divided. The meeting in Austin, Texas, could become a vote on Musk’s leadership itself. His political statements and unpredictable management style have made him one of the most polarizing figures in business. On X, the platform he owns, Musk warned that Tesla’s future “could affect the future of civilization.” He also highlighted support from Michael Dell, Ark Invest CEO Cathie Wood, and his brother Kimbal, a Tesla board member. “There is no one remotely close to my brother,” Kimbal said. Musk responded: “Thanks bro ❤️.”
Investors question Tesla’s priorities
For some shareholders, the pay package reflects Tesla’s deeper challenges. Car sales have slowed, and critics argue Musk has diverted focus from the company’s core mission. “It’s remarkable that a company struggling to sell cars spends money promoting a pay package,” said Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management. Gerber has reduced his Tesla holdings and grown increasingly critical. “Tesla must return to its roots—building and selling electric vehicles,” he said.
The trillion-dollar challenge
Musk’s proposed package does not hand him $1 trillion directly. Instead, it sets a performance goal: raise Tesla’s market value from $1.4 trillion to $8.5 trillion. He must also oversee the deployment of one million “Robotaxi” self-driving vehicles, despite slow progress. Achieving these targets would earn Musk 423.7 million new shares, worth nearly $1 trillion at the target valuation. Tesla has not commented on its strategy to win shareholder support.
This is not Musk’s first pay controversy. A prior multibillion-dollar package rewarded him for boosting Tesla’s market value tenfold. Though he met that milestone, a Delaware judge voided the agreement in 2024, citing conflicts of interest with the board. The Delaware Supreme Court is reviewing the case while Tesla pursues this even larger plan.
“Tesla continues to operate outside normal corporate norms,” said Columbia Law professor Dorothy Lund. “They are far from a model of good governance.” She added that campaigns like this usually occur when activist investors threaten major change, not for executive pay. “I’ve never seen anything like it,” she said.
Both Elon and Kimbal Musk will vote on the proposal, giving them significant influence. Musk, already the world’s richest man, became the first known half-trillionaire earlier this year.
Board defends its CEO
Tesla insists Musk is irreplaceable. The company says he “uniquely possesses the leadership qualities needed to achieve its long-term mission.” Wilson-Thompson explained that the board spent seven months consulting legal and pay experts to design the package. Musk has emphasized that the real issue is control, not money, saying he needs authority to guide Tesla’s future.
Critics argue the board is overstepping. “A board should represent shareholders, not advocate for a CEO,” said Yale professor Matthew Kotchen, co-author of a study on Musk’s recent impact on Tesla’s reputation.
Institutional investors have voiced opposition. Proxy advisers Glass Lewis and ISS recommended shareholders reject the plan, calling it excessive and harmful to shareholder value. Norway’s sovereign wealth fund and U.S. pension giant CalPERS have pledged to vote no. New York State Comptroller Thomas DiNapoli urged investors to oppose Tesla directors, citing failure to provide “independent oversight and accountability.”
A vote that could define Tesla
With institutional resistance mounting, Musk may rely on Tesla’s loyal retail investors to support the package. Morgan Stanley analyst Adam Jonas called Thursday’s vote “one of the most important events in Tesla’s history,” warning the proposal could fail.
Criticism outside Tesla continues. Protests have persisted since Musk’s short-lived and controversial role in Donald Trump’s administration earlier this year. “It’s hard to imagine Musk quickly repairing the damage to Tesla’s brand,” said Kotchen.
Still, supporters remain confident. “Musk’s vision and personality have drawn more attention to Tesla than almost any CEO,” said Edmunds’ Jessica Caldwell. “He’s polarizing, but investors still believe he can achieve the extraordinary.”
The key question now looms: will Tesla shareholders grant Musk his $1 trillion dream—or finally signal the limits of his influence?
