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Topline Tesla shareholders will vote Thursday on whether to approve a compensation package for CEO Elon Musk that could be worth close to $1 trillion, a deal proposed by Tesla’s board as crucial to keeping the world’s richest man at the company, though the payment plan has been challenged in recent weeks by some of the automaker’s largest shareholders. Key Facts Who Will Vote In Favor Of Musk’s Pay Package? Tesla chair Robyn Denholm, in a letter to shareholders last week, warned investors that Musk may leave the company if the plan is denied, claiming Tesla would lose “significant value without Musk” as Tesla “may no longer be valued for what we aim to become.” Denholm and other board members wrote in another letter they believe Musk’s vision for the company is “vital to navigating this crucial inflection point.” Counterpoint Global, an investment team operating within Morgan Stanley, said it would vote in favor of Musk’s deal, arguing under Musk’s leadership, Tesla has “achieved incredible fundamental success and shareholder returns.” The Florida State Board of Administration offered “strong support” for Musk’s compensation plan, adding to backing from Charles Schwab, which said the proposal “aligns both management and shareholder interests, ensuring the best outcome for all parties involved.” Baron Capital founder Ron Baron wrote on X the firm would back Musk’s pay plan, arguing, “Without [Musk’s] relentless drive and uncompromising standards, there would be no Tesla.” Who Will Oppose Musk’s Pay Deal? Norges Bank Investment Management, which manages Norway’s sovereign wealth fund, said it would vote against the plan as it was “concerned about the award, dilution and lack of mitigation of key person risk.” That mirrors earlier warnings from proxy firms Glass Lewis and Institutional Shareholder Services, which advised Tesla shareholders to vote against the pay package after earlier opposing Musk’s $56 billion pay deal last year. The California Public Employees’ Retirement System, which holds roughly 5 million shares in Tesla, said it would vote against the payment plan. Drew Hambly, CalPERS’ global equities investment director, told Bloomberg the deal proposed for Musk was larger than payment plans for executives of other firms “by many orders of magnitude” and would “further concentrate power in a single shareholder.” What Has Elon Musk Said About His $1 Trillion Pay Package? Musk criticized Glass Lewis and ISS for their opposition to the pay deal, accusing the firms of being “corporate terrorists” and their advice for shareholders to oppose the compensation plan as “asinine.” While Musk has not directly commented on the pay deal, Tesla disclosed in an SEC filing that Musk “raised the possibility” he might leave the company unless he was assured a larger voting power, which Musk is guaranteed under the new deal. He told analysts during Tesla’s quarterly earnings call last month that he wouldn’t “feel comfortable building [Tesla’s] robot army if I don’t have at least a strong influence.” Big Number 96%. Those are the odds placed by Polymarket that Tesla will approve Musk’s pay deal. Kalshi, which placed odds as high as 98% in September, has priced in odds of 91% as of Thursday morning. Key Background Tesla reported deliveries of just over 497,000 vehicles through its third quarter, the largest by the automaker on record. That fueled quarterly revenues of $28.09 billion, beating Wall Street’s forecasts, as Tesla’s sales appeared to be boosted by the expiration of federal tax credits for electric vehicle purchases in October. Tesla has reported declining sales in Europe in recent months as it faced competition among EV alternatives from Volkswagen and BYD, disclosing earlier this week that sales had dropped more than 50% in Norway, nearly 48% in the Netherlands, 30% in Spain and 88% in Sweden. Earlier this year, Tesla faced widespread protest while Musk dived into politics, briefly leading the Department of Government Efficiency in the Trump administration after backing President Donald Trump’s campaign. The management consulting firm Interbrand ranked Tesla as the 25th-best global brand last month, behind automakers BMW, Mercedes, and Toyota. Interbrand ranked Tesla No. 12 in 2024 and called the automaker a “disruptive force in the automotive industry,” noting its decline in rankings was the result of rising EV competition and Musk’s politics. Forbes Valuation Musk is the world’s richest person with a fortune valued at $500.2 billion as of Thursday. He became the first person to be worth $500 billion and $400 billion earlier this year, as Tesla shares have risen 20% on the year. Further Reading ForbesTesla Stock Drops Before Shareholder Meeting As Major Investor Plans Vote Against Musk Pay PlanForbesNorway’s Sovereign Wealth Fund Will Vote Against Musk’s Proposed $1 Trillion Tesla Pay Plan
