Tesla is pushing hard to convince its shareholders that CEO Elon Musk deserves a new $1 trillion pay package. Ahead of the company’s annual general meeting (AGM) in Austin, Texas, Tesla has launched digital ads and even created a website — VoteTesla.com — to promote the idea that Musk’s leadership is worth every dollar.
The company’s board chair, Robyn Denholm, and director Kathleen Wilson-Thompson appeared in a video praising Musk as uplifting music played in the background. But not everyone agrees that the billionaire deserves this massive payday.
A Divided Vote Ahead
The upcoming AGM is shaping up to be a referendum on Musk himself. Over the years, the Tesla boss has become one of the most controversial and polarizing CEOs in the world.
Musk has used his own social platform, X (formerly Twitter), to argue that the outcome of the vote could “affect the future of civilization.” He’s also received public support from big names like Michael Dell, Cathie Wood, and his brother Kimbal Musk, who sits on Tesla’s board.
Kimbal even said, “There is no one remotely close to my brother,” to which Musk replied, “Thanks bro ❤️.”
Still, many investors aren’t convinced.
Critics Say Tesla Has Lost Focus
Some investors argue that Tesla has lost direction under Musk’s leadership, especially as car sales have fallen.
Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, criticized Tesla’s strategy:
“It’s amazing that a company struggling to sell cars spends money on advertising to sell a pay package.”
He believes Tesla should refocus on its core mission — building and selling electric vehicles (EVs) — rather than promoting Musk’s personal deal.
What the $1 Trillion Deal Actually Means
Musk’s proposed package isn’t a $1 trillion paycheck. Instead, it rewards him only if Tesla’s market value grows from $1.4 trillion to $8.5 trillion.
To achieve this, Musk would also need to launch 1 million self-driving “Robotaxis” into commercial use — a huge challenge, considering Tesla’s autonomous driving technology still faces many hurdles.
If those goals are met, Musk would receive 423.7 million Tesla shares, worth about $1 trillion at that target valuation.
Tesla has not commented publicly on this campaign or its advertising efforts.
A History of Pay Controversies
This isn’t the first time Musk’s pay has caused debate.
In 2018, shareholders approved a massive multi-billion-dollar pay plan if Musk could increase Tesla’s value tenfold — and he did. But in 2024, a Delaware judge rejected the deal, saying Tesla’s board was too close to Musk personally and financially.
That ruling is now being reviewed by the Delaware Supreme Court, even as Tesla pursues this new, even larger pay package.
Professor Dorothy Lund from Columbia Law School commented:
“Nothing about Tesla is normal. They’re not a poster child for good corporate governance.”
She also noted she has never seen a company spend so much effort campaigning for a CEO’s pay package.
Why Tesla Says Musk Must Stay
Tesla argues that losing Musk would be disastrous. The board claims Musk alone has the vision and leadership needed to drive Tesla’s long-term mission — from AI-driven cars to robotic manufacturing.
In a company video, director Wilson-Thompson said Tesla worked with legal and compensation experts for seven months to design this plan.
Musk, however, has downplayed the money aspect, saying his main goal is to maintain enough control over Tesla to guide its future effectively.
But critics argue that the board should protect shareholders, not advocate for its CEO.
Professor Matthew Kotchen of Yale University said:
“The role of a board is to represent shareholders, not to promote a CEO.”
Growing Opposition from Major Investors
Some major investors and advisers have already come out against the proposed deal.
- Glass Lewis and ISS, two major proxy advisory firms, said the plan is excessive and would dilute shareholder value.
- Norway’s sovereign wealth fund (the largest in the world) and CalPERS, the biggest U.S. public pension fund, have both rejected it.
- New York State Comptroller Thomas DiNapoli said Tesla’s board has failed to show “independent oversight and accountability.”
This opposition means Musk may now have to rely more on retail investors — individual shareholders who tend to strongly support him — to get the plan approved.
The Most Important Vote in Tesla’s History
Analysts say Thursday’s AGM could be one of the most important events in Tesla’s history.
Morgan Stanley’s Adam Jonas even said there’s a “real chance the deal won’t pass.”
Meanwhile, anti-Tesla protesters are still organizing rallies following Musk’s controversial political ties and failed role in U.S. politics earlier this year.
Professor Kotchen added:
“It’s hard to imagine Musk shaking off the damage he’s done to Tesla’s brand anytime soon.”
Still, others argue Musk’s track record of bold innovation and global influence make it risky to bet against him.
Jessica Caldwell from Edmunds summed it up:
“Musk’s larger-than-life personality has drawn more attention to Tesla than any other CEO in modern history.
He’s polarizing, but people still believe in his ability to deliver big.”
Final Thoughts
Tesla’s board insists Elon Musk is the only person who can lead the company into the future.
But with billions — and Tesla’s reputation — on the line, the final decision now lies with the shareholders.
The trillion-dollar question remains:
👉 Will they vote yes?
