Here is what's at stake as shareholders prepare to vote on Elon Musk's $1 trillion pay package at Tesla's annual meeting

Core Points - Tesla is preparing for a significant shareholder meeting on November 6, where key issues regarding the company's future and CEO Elon Musk's performance will be voted on [1][2] - The company has faced political controversies and declining sales, leading to questions about Musk's leadership and Tesla's investment in AI [2] - A proposed $1 trillion pay package for Musk is a central topic of contention, with potential implications for his role as CEO [3][4] Shareholder Meeting Context - The meeting will address Musk's proposed pay package, which could be worth up to $1 trillion over the next decade, following the rejection of a previous $56 billion plan by a Delaware judge [8] - Musk's compensation is contingent upon achieving ambitious milestones, including raising Tesla's market cap to $8.5 trillion by 2035 and selling 12 million vehicles annually [9] - The board has warned that failure to approve the pay package could result in Musk leaving the company [4] Controversy Surrounding Compensation - Proxy advisory firms ISS and Glass Lewis have recommended that shareholders reject Musk's pay proposal, citing concerns over excessive power and lack of oversight [10] - Musk has publicly criticized these firms, referring to them as "corporate terrorists" during a recent earnings call [10] Investment in AI - Tesla is seeking shareholder approval for an investment in Musk's AI startup, xAI, which has quickly gained value and raised over $12 billion [12][13] - xAI's valuation reached approximately $50 billion in 2024, and it has been involved in significant transactions, including acquiring X in an all-stock deal [12][13] Interconnected Ventures and Accountability - Concerns have been raised about potential conflicts of interest due to Musk's involvement in multiple companies, including Tesla, SpaceX, Neuralink, and xAI [14] - Tesla's board has rejected numerous shareholder proposals aimed at increasing accountability, although some proposals have made it to the ballot [15][16] - Proposed measures include amending bylaws to limit derivative lawsuits and integrating sustainability metrics into executive compensation [17]