Tesla Investors Revolt Against Musk: Trillion-Dollar Pay Package Under Fire

Tesla has found itself at the center of a heated debate. A group of key shareholders has urged other investors to vote against Elon Musk’s proposed compensation package worth up to $1 trillion at the company’s annual general meeting on November 6. Under the plan, Musk would only receive the payout if Tesla’s market capitalization rises to $8.5 trillion and the company meets a series of ambitious milestones, including producing one million Optimus robots, delivering twelve million electric cars by 2035, and raising annual profits to $400 billion. According to Tesla’s board, the package is designed as a performance-based incentive that directly links Musk’s compensation to shareholder value – if he fails to deliver, he gets nothing.

Investor Criticism and Leadership Disputes Opposition has come from SOC Investment Group, the American Federation of Teachers, and several U.S. state treasurers. Critics argue that Musk is stretched too thin across multiple companies – from SpaceX and Neuralink to Boring Company and xAI – and that Tesla is not his main focus. They also claim the board lacks independence due to its close personal ties to Musk. Furthermore, they say the performance criteria are vague and less demanding than they appear, warning that approving the package could dilute shareholder equity and weaken oversight of Tesla’s management.

Weak Performance and Future Uncertainty Tesla has faced significant challenges in the first half of 2025. Revenue dropped 13% year-on-year, vehicle sales fell 18%, operating profit plunged 52%, and net income dropped 38%. In Europe, revenues declined by more than a third, with the steepest falls in Sweden, Belgium, and the Netherlands. Tesla’s market share in battery electric vehicles slipped from 21.6% to 14.5%. Although the company reported 497,099 deliveries in the third quarter — a 7% increase compared to the previous year — production actually fell compared to last year’s figures.

A Crucial Vote Ahead The upcoming shareholder vote will be decisive not only for Musk but also for Tesla’s future. Approving the compensation package would represent a strong bet on Musk’s leadership and his vision of transforming Tesla into a megacorporation of the future. Rejecting it, on the other hand, could pave the way for greater oversight and potentially more stable long-term strategies. The outcome will reveal whether investors trust Musk enough to back a compensation plan unlike anything ever seen in corporate history.

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