Elon Musks future at Tesla in balance as shareholders consider $1 trillion pay package | Latest Tech News
Elon Musk’s future at Tesla might dangle in the balance on Thursday when shareholders vote on whether or not to approve his record-shattering $1 trillion pay package.
The controversial proposal, which is scheduled to be thought of at Tesla’s annual assembly in Texas, would hand Musk an unprecedented payout tied to a sequence of efficiency benchmarks.
Critics – including key proxy advisory companies ISS and Glass Lewis and even Pope Leo XIV – argue the proposed wage is extreme. Meanwhile, Tesla chairwoman Robyn Denholm and Musk himself have warned that he might go away the company completely if shareholders reject the proposal.
“Tesla may lose his time, talent and vision, which have been essential to delivering extraordinary shareholder returns,” Denholm said in a latest letter posted on X.
Tesla shareholders will vote on a almost $1 trillion pay package for Musk. REUTERS
Musk has framed the vote in near-apocalyptic phrases – declaring in an Oct. 29 X post that “control of Tesla could affect the future of civilization.”
The billionaire has argued that he wants larger voting control supplied by the stock grants in order to successfully information Tesla’s future plans for artificial intelligence, which embrace the robots and full self-driving technology. Musk would control almost 29% of voting shares if he hits all targets.
The jaw-dropping pay package, unveiled in a September proxy submitting, was crafted by Tesla’s board after a Delaware decide struck down a earlier $56 billion compensation plan for Musk. The decide ruled that the earlier package, which was accredited in 2018, was extreme and riddled with conflicts of curiosity.
Under the latest proposal, one tranche of Musk’s pay can be awarded if Tesla hits a $2 trillion valuation and delivers 20 million autos. Another would kick in if Tesla is valued at $3 trillion and delivers 1 million of its “Optimus” humanoid robots.
The new pay package drew a major rebuke this week from Norway’s sovereign wealth fund, which grew to become the biggest Tesla stakeholder to say it opposed the plan.
Tesla’s board has warned Elon Musk might go away if the package is rejected. REUTERS
“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk,” said Norges Bank Investment Management, which oversees the sovereign wealth fund.
Tesla shares have been down almost 5% in Tuesday’s trading.
Pope Leo XIV beforehand cited Musk’s pay package as an instance of the loss of “the value of human life, of the family, of the value of society.”
“Yesterday, the news [arrived] that Elon Musk is going to be the first trillionaire in the world,” Leo told Catholic news outlet Crux in an interview revealed in September.
“What does that mean, and what’s that about?” the pontiff continued. “If that is the only thing that has any value any more, then we are in big trouble.”
ISS and Glass Lewis have also really useful that shareholders say no, asserting that the pay is extreme and might dilute the holdings of other traders.
An individual sits in a Tesla Cybercab exterior the Nasdaq Market website in New York City, U.S., October 27, 2025. REUTERS
Tesla’s largest particular person traders, including BlackRock, State Street and Vanguard, have yet to reveal how they plan to vote.
Despite the lingering uncertainty, Wedbush analyst Dan Ives said he expects shareholders to give a “bright green light” to the plan.
“With the AI Revolution this is a crucial time for Tesla ahead with autonomous and robotics front and center,” Ives said in a word to shoppers on Monday.
“We expect shareholders to show overwhelming support for Musk and the xAI stake further turning Tesla into an AI juggernaut with the autonomous and robotics future on the horizon.”
With Post wires
Stay informed with the latest in tech! Our web site is your trusted source for breakthroughs in artificial intelligence, gadget launches, software program updates, cybersecurity, and digital innovation.
For contemporary insights, professional coverage, and trending tech updates, go to us frequently by clicking right here.
