Tesla(US:TSLA) Xin Lang Cai Jing·2025-11-06 08:18Core Viewpoint - Tesla's board has placed all its chips on Elon Musk, as investors prepare to vote on a historic $1 trillion compensation plan for him, which could significantly impact the company's future and stock price [1][2]. Compensation Plan Details - The proposed compensation plan includes performance targets such as achieving a market value of $8.5 trillion, selling 12 million cars, delivering 1 million humanoid robots, launching 1 million autonomous taxis, and increasing adjusted earnings from $16.6 billion in 2024 to $400 billion [1][2]. - If approved, this would be the largest compensation plan in corporate history, and Musk's ownership stake in Tesla would increase from 13% to nearly 29% [1][2]. Investor Reactions - Some investors are indifferent to the high compensation figures, believing that if Tesla's stock rises significantly, they will benefit regardless of Musk's earnings [2]. - However, there is significant opposition from institutional shareholders and advisory firms, citing concerns over the plan's scale and lack of effective constraints [3][4]. Governance Concerns - Critics argue that the plan undermines corporate governance principles by tying the company's future too closely to a single leader, who has multiple conflicts of interest [3][4]. - Governance experts express that the threat of Musk leaving could lead to a collapse in Tesla's stock price, giving him undue power to demand such a compensation package [6][8]. Support for Musk - Supporters, including prominent investors, argue that Musk's leadership is crucial for Tesla's ambitions in AI and autonomous driving, and that the compensation is justified if he meets the ambitious targets [5][6]. - The board's stance is seen as a necessary measure to retain Musk, given his significant influence on the company's valuation and future direction [6][8]. Voting Dynamics - Musk holds a potentially decisive voting power with his 15% stake, and approximately 40% of shares are held by retail investors loyal to him [7]. - The upcoming shareholder meeting will also address other matters, including investments in Musk's AI company, xAI [7]. Legal Context - Tesla's previous compensation plan from 2018 is under legal scrutiny, with a Delaware court having previously ruled it excessive, which adds complexity to the current proposal [7][8]. - Recent changes in Texas law make it more challenging for shareholders to sue, further complicating the governance landscape for Tesla [8].