In a high-stakes move that stunned Wall Street, Elon Musk has issued a blunt message to Tesla shareholders: approve his massive new compensation package—or risk derailing the company’s future. The plea comes despite a recent dip in Tesla’s profits and growing skepticism from institutional investors about the billionaire’s ever-expanding empire .
Speaking at a virtual investor forum on Wednesday, Musk framed the proposed pay deal not as a reward, but as a necessity for Tesla to achieve what he calls “multiplanetary scale.” He warned that without his full-time focus and long-term alignment with the company, Tesla could lose its edge in the race for AI, robotics, and sustainable energy.
What’s in Musk’s Trillion-Dollar Pitch?
While exact figures haven’t been finalized, the proposed package is widely believed to mirror Musk’s controversial 2018 deal—valued at over $55 billion—which was voided earlier this year by a Delaware judge who ruled it was “self-dealing” and unfairly negotiated. This new proposal, however, aims to be even more ambitious.
According to sources familiar with the plan, Musk is seeking equity tied to Tesla hitting a $1 trillion market cap milestone—again—and sustaining it over multiple years, alongside aggressive revenue and AI deployment targets. In return, he would forgo salary and bonuses, betting entirely on the company’s long-term stock performance.
Tesla’s Financial Reality Check
The timing is delicate. Tesla just reported a 12% year-over-year drop in Q3 net profit, citing price cuts, slowing EV demand in China, and rising costs from its Cybertruck ramp-up. Yet Musk insists short-term volatility shouldn’t distract from the “existential mission” of transitioning the world to sustainable energy.
| Quarter | Net Profit (YoY Change) | Key Challenges |
|---|---|---|
| Q3 2025 | –12% | Price wars, China slowdown, Cybertruck costs |
| Q2 2025 | –8% | Supply chain bottlenecks, regulatory scrutiny |
| Q1 2025 | +3% | Strong Model Y demand, energy division growth |
Investor Backlash and Musk’s Warning
Major shareholders like CalPERS and the Norwegian Sovereign Wealth Fund have already voiced concerns. “We support innovation, but not blank checks,” said one fund manager who asked not to be named.
Musk, however, didn’t mince words. “If this package isn’t approved,” he said, “I cannot guarantee I’ll remain fully committed to Tesla. My attention is required across SpaceX, xAI, Neuralink, and the Tesla AI team. Something has to give.”
The remark was interpreted by many as both a plea and a threat—a reminder that Musk’s personal brand and leadership are still deeply intertwined with Tesla’s valuation.
Legal Hurdles Ahead
Even if shareholders approve the deal, legal challenges are almost certain. The 2018 package was struck down after a shareholder lawsuit argued the board lacked independence in negotiating with Musk. This time, Tesla says it has formed a special committee of independent directors—but critics remain wary.
“They’re trying to fix the process, but the optics are still terrible,” said corporate governance expert Dr. Priya Mehta of NYU Stern. “Paying one executive tens of billions while cutting staff and lowering car prices sends a mixed message.”
What’s at Stake for Tesla?
Beyond the pay package, the real issue is leadership continuity. Tesla is entering its most competitive phase yet—with legacy automakers like Ford and GM doubling down on EVs, and Chinese rivals like BYD outselling it globally.
Musk’s vision now hinges on Full Self-Driving (FSD) software, the Optimus robot, and AI infrastructure. Without him steering the ship, some fear Tesla could become just another car company.
