Tesla Will Vote On Musk's Trillion-Dollar Payday Today—Here's What Might Happen

Core Viewpoint - Tesla shareholders are set to vote on a compensation package for CEO Elon Musk that could be valued at nearly $1 trillion, which is seen as essential for retaining Musk at the company, despite opposition from some major shareholders [1][2]. Group 1: Compensation Package Details - The proposed compensation package would grant Musk over 423 million additional shares, potentially increasing his ownership stake to approximately 25% if Tesla meets specific performance goals over the next decade [2][3]. - For Musk to receive the full compensation, Tesla's market capitalization must rise from $1.5 trillion to $8.5 trillion within ten years, alongside achieving targets such as selling 12 million cars and operating 1 million Robotaxis [3]. Group 2: Support for the Pay Package - Tesla chair Robyn Denholm indicated that denying the plan could lead to Musk's departure, which would significantly diminish Tesla's value [4]. - Supporters of the plan, including Counterpoint Global and the Florida State Board of Administration, argue that Musk's leadership has driven substantial success and shareholder returns [4]. Group 3: Opposition to the Pay Package - Norges Bank Investment Management and other proxy firms have expressed concerns about the compensation's size and its implications for shareholder power, recommending a vote against the plan [5]. - The California Public Employees' Retirement System also plans to oppose the package, citing its disproportionate scale compared to other executive compensation plans [5]. Group 4: Musk's Response - Musk criticized the opposition from proxy firms, labeling them as "corporate terrorists" and suggesting that he might leave Tesla if he does not secure greater voting power [6][7]. Group 5: Market Context - Tesla reported record deliveries of over 497,000 vehicles in the third quarter, generating revenues of $28.09 billion, surpassing Wall Street expectations [8]. - Despite strong quarterly performance, Tesla has faced declining sales in Europe due to increased competition from other electric vehicle manufacturers [8]. Group 6: Musk's Wealth - As of Thursday, Musk's net worth is estimated at $500.2 billion, making him the world's richest person, with Tesla shares having increased by 20% this year [9].