Musk’s $1 trillion ultimatum shakes Tesla ahead of shareholder vote

WEB DESK: Elon Musk has once again thrown Tesla into the spotlight, this time with a high-stakes demand that could reshape the company’s future. Ahead of Tesla’s annual meeting on November 6, the billionaire entrepreneur has reportedly warned he could walk away from the electric carmaker if shareholders reject his proposed $1 trillion pay package.

The plan, one of the largest in corporate history, would grant Musk up to 12 percent of Tesla’s stock—provided the company achieves a staggering $8.5 trillion market valuation. The proposal has reignited fierce debate about Musk’s influence over Tesla, the role of its board, and how far shareholders should go to retain his leadership.

Tesla board stands firmly behind Musk

Tesla Chair Robyn Denholm has thrown her full support behind the package, calling it crucial for keeping Musk committed to Tesla’s long-term ambitions. In a letter to shareholders, she described Musk as “irreplaceable” and vital to Tesla’s plans to expand its footprint in AI-driven mobility and automation.

Denholm said the proposed deal was designed to motivate Musk for at least another seven years, tying his rewards directly to company performance. Without it, she cautioned, Tesla risked losing its most valuable resource—Musk’s “time, talent, and vision.”

Critics call package excessive

But not everyone is convinced. Proxy advisory firm Glass Lewis has urged shareholders to vote against the proposal, warning that it could severely dilute existing shares and questioning the independence of Tesla’s board. Critics say the company’s directors remain too loyal to Musk to act as an effective check on his power.

This pushback comes months after a Delaware court voided Musk’s 2018 compensation plan, valued at $56 billion, citing governance concerns. That ruling has only added pressure on Tesla’s board to demonstrate stronger oversight this time around.

Former Tesla investor Romain Hedouin called the new proposal “excessive,” arguing that the company could continue to thrive under different leadership at a far smaller cost. Other investors worry that such a massive payout sends the wrong message about corporate accountability, especially as Tesla faces slowing sales and growing competition in the electric vehicle market.

Musk’s warning to shareholders

Musk has repeatedly insisted that Tesla’s future depends on his continued leadership. According to reports, he has pushed for around 25 percent ownership to maintain sufficient control over the company’s direction, particularly as Tesla moves deeper into artificial intelligence and robotics.

The proposed package, detailed in filings from September 2025, would give him that control only if Tesla achieves record-breaking milestones in both valuation and performance. Supporters argue it is a bold incentive that could drive Tesla to new heights. Detractors, however, warn it risks setting a dangerous precedent for executive pay and corporate governance.

As the November 6 vote draws near, shareholders face a defining choice: whether to back Musk’s billion-dollar vision or draw a line on corporate power and pay. One thing is certain—Tesla’s future, once again, hangs on the man who built it.