Is Musk's Big Payday a Turning Point for Tesla?
The Tesla (NASDAQ: TSLA) share price advanced ahead of the company’s annual shareholder meeting on November 6, where CEO Elon Musk’s proposed $1 trillion pay package dominates discussion. The central issue is not just compensation, but the risk that Musk might step away if the deal is rejected.
“My fundamental concern … if I go ahead and build this enormous robot army, can I just be ousted at some point in the future?“
The proposal involves stock options, not direct cash. The package’s value depends entirely on Musk meeting a series of ambitious performance milestones for Tesla. If those goals are achieved within the next decade, the company’s market capitalization could grow from $1.5 trillion to $8.5 trillion.
Some investors argue that such potential growth justifies the deal. Ark Invest CEO Cathie Wood, known for her bullish outlook, has projected a $2,600 share price for Tesla by 2029, aligning with this valuation target.
However, not all shareholders agree. Norway’s sovereign wealth fund, holding about 1.2 percent of Tesla, has voiced opposition to the proposal, reflecting broader concerns about governance and equity concentration.
Author’s Summary
Elon Musk’s massive stock-based pay proposal divides Tesla investors, balancing fears of his exit against hopes for unprecedented company growth.