Tesla Shareholders Expected to Approve Elon Musk's Controversial $1 Trillion Pay Package

Tesla CEO Elon Musk's proposed $1 trillion performance-based compensation package has sparked significant debate ahead of a November 6 shareholder vote. The package requires Musk to achieve ambitious milestones, including increasing Tesla's market cap to $8.5 trillion and hitting high targets for vehicle deliveries, Full Self-Driving subscriptions, and production of Tesla Bots and Robotaxis, with no payout if these are unmet. Supporters, including Dell Technologies CEO Michael Dell and Tesla executives like Ashok Elluswamy and Board Chair Robyn Denholm, argue the package aligns Musk's incentives with unprecedented company growth and is critical as Tesla transitions into a leader in robotics and AI. However, major institutional investors and proxy advisory firms ISS, Glass Lewis, and Calpers oppose the plan, citing concerns over its excessive size, vague goals, potential dilution of investor holdings, and lack of board independence. Despite vocal opposition and a lobbying campaign by Tesla management, the package is expected to pass, though it may face subsequent legal challenges. The outcome carries significant implications for Tesla's strategic direction and Musk's control over the company.