Before Tesla’s annual general meeting on Thursday, the electric carmaker is flooding investors with one message: Elon Musk is worth $1 trillion. The company has launched an online campaign defending its CEO’s record-breaking pay plan. On Votetesla.com, board chair Robyn Denholm and director Kathleen Wilson-Thompson praise Musk in a video set to soaring music. But many investors remain unconvinced. The meeting in Austin, Texas, is turning into a public verdict on Musk himself — a man whose political leanings and unpredictable style have made him one of the most divisive figures in modern business. Musk has used his own platform, X, to intensify the stakes, warning that Tesla’s outcome “could affect the future of civilization.” He has also boosted endorsements from his allies, 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 admiringly. “Thanks bro ❤️,” Musk replied.
Cracks in confidence
To some investors, the drama surrounding Musk’s pay reflects how Tesla has lost direction as sales decline. “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 scaled back his Tesla stake and sharpened his criticism. “Tesla needs to focus again on what it does best — selling electric vehicles,” he said.
The trillion-dollar challenge
Musk’s proposed deal is not a $1tn salary. It sets him the task of raising Tesla’s market value from $1.4tn to $8.5tn. He must also lead a surge in self-driving “Robotaxi” cars, putting one million into commercial use — a bold goal after their slow rollout. If Musk meets those targets, he would receive 423.7 million new shares, worth close to $1tn at the target valuation. Tesla has not responded to media requests for comment about its strategy to win support.
This is not the first time Musk’s pay has stirred debate. Shareholders previously approved a package worth tens of billions if he boosted Tesla’s market value tenfold. He achieved that, but in 2024 a Delaware judge struck down the deal, saying the board was too closely linked to him. The Delaware Supreme Court is now reviewing that decision as the company seeks approval for this even larger package.
“The playbook is familiar for Tesla, but nothing about Tesla is normal,” said Columbia Law School professor Dorothy Lund in an interview. “They’re far from a model of sound corporate governance.” She explained that companies usually campaign to influence shareholder votes when facing activist investors — not during pay discussions. “I’ve never seen this kind of effort over executive compensation,” she said.
Both Elon and Kimbal Musk will vote on the proposal, aiming for a majority to secure approval. Musk, already the world’s richest man, became the first half-trillionaire earlier this year.
A board under scrutiny
Tesla says it cannot afford to lose Musk. The company argues he “uniquely possesses the leadership required to realise its long-term goals.” In a video on Votetesla.com, Wilson-Thompson said the board worked seven months with legal and compensation experts to craft the plan. During last month’s earnings call, Musk downplayed the payout, saying he only wanted enough control to steer the company properly.
But critics accuse the board of overstepping. “The board’s duty is to protect shareholders, not promote the CEO,” said Yale professor Matthew Kotchen, who co-authored a study on the recent damage to Tesla’s reputation.
Many large institutions share that concern. Proxy advisers Glass Lewis and Institutional Shareholder Services have urged investors to reject the plan, calling it excessive and harmful to shareholders. Norway’s sovereign wealth fund, the world’s largest, has done the same, alongside CalPERS, the biggest U.S. public pension fund. New York State Comptroller Thomas DiNapoli has urged shareholders to vote against Tesla directors seeking re-election, accusing them of failing to ensure “independent oversight and accountability.”
The vote that could shape Tesla’s destiny
With institutional investors pulling back, Musk may rely on Tesla’s vast base of small retail investors, who often support him. Morgan Stanley analyst Adam Jonas called Thursday’s vote one of “the most important events” in Tesla’s history, warning there’s a “real chance” the plan could fail.
Protests against Tesla continue as well, months after Musk’s brief and controversial role in Donald Trump’s administration ended in chaos. “It’s hard to imagine Musk quickly undoing the damage he’s done to this brand,” said Kotchen.
Others argue that Musk’s unique record makes him too influential to doubt. “Elon Musk’s larger-than-life persona has brought more attention to Tesla than almost any other business leader,” said Jessica Caldwell, head of insights at Edmunds. “He’s more divisive now, but many still trust his ability to turn bold ideas into reality,” she added.
The trillion-dollar test is now underway — and Tesla’s future may depend on how its shareholders answer.
