As Tesla’s annual general meeting approaches on Thursday, the company is delivering one powerful message to its shareholders: Elon Musk is worth $1 trillion. The electric carmaker has launched a high-profile campaign defending its chief executive’s enormous pay plan. On Votetesla.com, board chair Robyn Denholm and director Kathleen Wilson-Thompson appear in a video praising Musk while epic music builds in the background. But many investors are sceptical. The meeting in Austin, Texas, is shaping up to be a referendum on Musk himself — a figure whose political comments and unpredictable style have split opinion among both fans and investors. Musk has used his own platform, X, to turn up the pressure, warning that Tesla’s fate “could affect the future of civilization.” He has also amplified messages of support from backers including Dell founder Michael Dell, Ark Invest CEO Cathie Wood, and his brother Kimbal, who sits on Tesla’s board. “There is no one remotely close to my brother,” Kimbal said proudly. “Thanks bro ❤️,” Musk replied.
Investor doubts grow
Many investors see the debate around Musk’s pay as a sign that Tesla has lost focus while its car sales weaken. “What’s amazing to me is a company struggling to sell cars spends money on advertising to sell a pay package,” said Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management. He has cut back his Tesla shares and become more vocal in his criticism. “Tesla needs to return to its core — selling electric cars again,” he said.
The trillion-dollar target
The proposed deal is not a $1tn salary. It sets Musk the challenge of lifting Tesla’s market value from $1.4tn to $8.5tn. He must also lead a major expansion of self-driving “Robotaxi” cars, with one million expected to enter commercial use — a huge leap after their slow start. If Musk meets those goals, he would receive 423.7 million new shares, worth nearly $1tn at the target valuation. Tesla has not commented on its campaign to win shareholder backing.
This is not Musk’s first pay controversy. Shareholders previously approved a massive package worth tens of billions if he grew Tesla’s market value tenfold. Musk hit that goal, but in 2024 a Delaware judge struck down the deal, saying the board was too closely tied to him. The Delaware Supreme Court is now reviewing that decision while the company pushes for this even bigger plan.
“The approach is familiar for Tesla, though nothing about Tesla is ever ordinary,” said Columbia Law School professor Dorothy Lund in an interview. “They’re far from an example of good corporate governance.” She added that companies usually launch shareholder campaigns when facing activist investors — not during pay disputes. “I’ve never seen anything like this for a compensation decision,” she said.
Both Elon and Kimbal Musk will vote this time as they seek the majority needed to pass the plan. Musk, already the world’s richest person, became the first half-trillionaire earlier this year.
A board under fire
Tesla insists it cannot afford to lose Musk. The company argues he “uniquely possesses the leadership necessary to achieve its long-term goals.” In a video on Votetesla.com, Wilson-Thompson said the board spent seven months working with legal and compensation experts to design the package. During Tesla’s last earnings call, Musk downplayed the focus on money, saying he only wanted enough control to steer the company effectively.
Critics say the board has gone too far in supporting him. “The board’s job is to protect shareholders, not to campaign for the CEO,” said Yale professor Matthew Kotchen, who co-authored a study on the damage Musk has recently caused to Tesla’s brand.
Several major institutions share that view. Proxy advisers Glass Lewis and Institutional Shareholder Services have told investors to reject the deal, calling it excessive and bad for shareholders. Norway’s sovereign wealth fund, the world’s largest, plans to vote no, as does CalPERS, the biggest U.S. public pension fund. New York State Comptroller Thomas DiNapoli has urged investors to oppose Tesla directors seeking re-election, accusing them of failing to provide “independent oversight and accountability.”
A defining vote for Tesla’s future
With many large investors against the deal, Musk may depend on Tesla’s massive base of small retail shareholders, who usually back him. Morgan Stanley analyst Adam Jonas called Thursday’s vote one of “the most important events” in Tesla’s history and warned there is a “real chance” the package could fail.
Musk’s challenges extend beyond the boardroom. Protests continue against Tesla months after his brief and controversial stint in Donald Trump’s administration ended in turmoil. “It’s hard to imagine Musk quickly repairing the damage he’s done to this brand,” said Kotchen.
Still, others believe Musk’s influence remains unmatched. “Elon Musk’s larger-than-life personality has brought more attention to Tesla than almost any other corporate leader,” said Jessica Caldwell, head of insights at Edmunds. “He’s more polarising than ever, but many still believe he can turn ambitious ideas into reality,” she added.
The question now looms large over Tesla: will its shareholders decide Elon Musk is truly worth a trillion dollars?
