Tesla Shareholders Divided Over Elon Musk’s $1 Trillion Pay Proposal

Tesla’s highly anticipated shareholder meeting has stirred strong debate as investors prepare to vote on CEO Elon Musk’s proposed compensation package — a deal that could make him the first executive in history eligible for earnings valued at up to $1 trillion.

The proposed plan would grant Musk a series of performance-based stock options tied to ambitious company milestones, including major growth in vehicle production, profitability, and artificial intelligence development. If approved, the package could give Musk close to a 25% ownership stake in Tesla, reinforcing his influence over the company’s long-term direction.

Supporters argue that Musk’s leadership has been key to Tesla’s transformation into one of the world’s most valuable automakers and that his compensation reflects his results-driven approach. They see the plan as a way to secure his continued commitment amid Tesla’s rapid expansion into robotics, energy storage, and self-driving technology.

However, several large institutional investors have voiced concern about the scale of the package, saying it could dilute shareholder value and overly concentrate control in Musk’s hands. Others fear that such a large payout might set a controversial precedent for corporate governance.

The Tesla board maintains that the package is entirely performance-based and designed to reward only measurable success. According to internal projections, Musk would receive the maximum payout only if the company achieves unprecedented goals — including reaching a market valuation exceeding $8 trillion within the next decade.

The outcome of the vote remains uncertain, with retail investors and long-term Tesla supporters largely backing Musk, while more conservative funds push for limits on executive compensation.

Beyond the pay debate, shareholders will also vote on several other proposals, including board re-elections and new technology investments. The decisions made at this meeting could shape the company’s strategic course for years to come, determining not just Musk’s personal stake, but also Tesla’s global leadership role in electric mobility and artificial intelligence.