Elon Musk wants a trillion dollars (or could leave Tesla)

A Tesla shareholder has warned that Elon Musk could leave the company if his newly proposed $1 trillion compensation plan is rejected, underscoring the high stakes ahead of Tesla’s annual meeting on November 6.

«If shareholders reject the pay package and fail to foster an environment that motivates Elon to achieve great things through an equitable pay-for-performance plan, we run the risk that he gives up his executive position.»

The vote will determine whether shareholders approve Musk’s second massive pay package — coming only months after his previous multi-billion-dollar plan was finalized — a move seen as critical to securing his continued commitment to Tesla as he divides his attention among several other ventures.

Shareholders’ best interests

Tesla chair Robyn Denholm issued the warning in a letter to shareholders ahead of the company’s November 6 annual meeting, saying: «If shareholders reject the pay package and fail to foster an environment that motivates Elon to achieve great things through an equitable pay-for-performance plan, we run the risk that he gives up his executive position.»

According to Reuters, Tesla’s board has faced repeated criticism for failing to act in shareholders’ best interests, with governance experts and advocacy groups questioning its independence and its ability to oversee Musk’s growing influence.

Critics argue that several members of the board have long-standing personal and financial ties to Musk, raising concerns that their decisions may favor his interests over those of ordinary investors.

Many question why Tesla would want to keep Musk at their side with all the harm he’s done to the company in recent months; yet, as investor Christopher Tsai put it, «Elon is clearly a key piece of the story».

Tesla’s public standing

This perception of weak corporate governance has fueled skepticism about the board’s willingness — or capacity — to hold Musk accountable as his power within the company continues to expand.

Musk’s recent controversies have further complicated Tesla’s public standing, with his outspoken political commentary and increasing alignment with far-right figures drawing backlash from parts of the public and the media.

Musk’s growing political involvement has deepened the controversies surrounding him and further damaged Tesla’s public image.

Once celebrated as a visionary entrepreneur, he became an increasingly polarizing figure through his outspoken commentary and alignment with right-wing causes.

The lines between business and politics

During the early months of Trump’s second term, Musk briefly took part in his administration in advisory roles for the Department of Government Efficiency (DOGE), pushing for deep cuts to the federal budget and workforce while advocating for policies that benefited his own companies.

Musk proximity to power fueled criticism that he was blurring the lines between business and politics. Musk’s large-scale political donations to the Trump campaign — described by watchdog groups as «astronomical» — have sparked accusations that he attempted to buy influence and even sway key elections.

«Elon is clearly a key piece of the story»

-Christopher Tsai

One recent lawsuit in Wisconsin alleged that Musk’s contributions and incentive schemes tied to a state Supreme Court race violated election laws.

Musk publicly backed Germany’s far-right party Alternative for Germany during the 2025 elections, triggering consumer backlash. In Germany alone, Tesla sales plunged over 75% year-on-year in February 2025. Across key European markets, Tesla’s registrations fell by nearly 50% while the EV market grew.

«I’m not saying it’s an easy path, but I see a path to Tesla being the most valuable company in the world by far.»

These political ventures, amplified by his provocative activity on X, have alienated many consumers and investors, with analysts estimating that Tesla’s U.S. sales and brand perception have suffered significantly as a result.

Amid growing criticism over his leadership and political controversies, Musk has continued to project confidence in Tesla’s future.

During a discussion with investors earlier this year, he dismissed concerns about the company’s trajectory and insisted that Tesla remains poised for explosive growth, saying: «I’m not saying it’s an easy path, but I see a path to Tesla being the most valuable company in the world by far. Not even close, like maybe several times more than – I mean, there is a path where Tesla is worth more than the next top five companies combined.»