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This Week's Vote on Elon Musk's Pay Could Determine 'The Future of Tesla'
Yahoo Finance· 2025-11-04 10:00
Core Points - Tesla is proposing a CEO performance pay package potentially worth $1 trillion to Elon Musk, aiming to secure his leadership amid the company's pivot into AI and robotics [2][3][4] - The company is conducting a media campaign urging shareholders to approve the pay package, emphasizing the importance of Musk's leadership for Tesla's future [4][5] - A key concern surrounding the proposal is the "key person risk," as the board believes Tesla's long-term success is heavily reliant on Musk's influence [5][6] Compensation Package - The proposed compensation package is designed to retain Musk's influence while allowing for accountability, ensuring he can be removed if necessary [6] - The package has garnered mixed reactions from various stakeholders, including advisory firms and labor unions [3][4] Investment in xAI - Another proposal in the 2025 plan seeks shareholder approval for Tesla to invest in xAI, a private AI company founded by Musk, although he has stated there will be no merger between Tesla and xAI [7][8] - The investment in xAI is seen as a potential avenue for further increasing Musk's wealth [7]