Tesla board warns shareholders: Approve Elon Musk's $1 trillion pay deal or risk losing him
A make-or-break moment for Tesla's future under Musk.
Tesla's board is urging investors to approve the unprecedented $878 billion pay package for CEO Elon Musk, warning that he might walk away if the proposal fails in a vote set for Thursday.
The board argues that only Musk can deliver on Tesla's bold promises, transforming the company into an AI powerhouse leading fleets of robotaxis and humanoid robots. The package, tied to stock-performance milestones, could make Musk's stake worth about a quarter of the company if targets are met.
Critics, however, say the deal exposes Tesla to "key person risk", concentrating too much power in one executive. Major investors including Norway's sovereign wealth fund have publicly opposed the plan, calling it excessive and risky, as you can read here.
Musk's leverage over Tesla's future
Musk, who already owns 15% of Tesla, has suggested he could focus on other ventures, including SpaceX, Neuralink, and xAI, if the board refuses his demands.
Tesla's stock, valued at $1.5 trillion, relies heavily on future AI-driven growth rather than current EV sales, giving Musk massive leverage over the company's direction.
As one corporate expert put it, "This is a guy holding a gun to his own head, saying: Give me a trillion dollars."
