Is Musk's big payday make-or-break for the Tesla share price?

The debate over Elon Musk’s proposed compensation package has intensified ahead of Tesla [finance:Tesla, Inc.]’s annual shareholder meeting on Thursday, November 6. The CEO’s plan, potentially worth up to $1 trillion, has sparked questions not only about its sheer size but also about the company’s future direction.

The scale of the proposal

Musk’s compensation is structured entirely as stock options, dependent on reaching ambitious performance milestones. If those targets are achieved within ten years, Tesla’s market capitalization would soar to $8.5 trillion, more than five times its current $1.5 trillion valuation.

The control question

“My fundamental concern … if I go ahead and build this enormous robot army, can I just be ousted at some point in the future?“ — Elon Musk

For Musk, the issue extends beyond financial reward. His comments underline concerns over maintaining control of Tesla, particularly as the company expands into robotics and artificial intelligence.

Investor perspectives

While some shareholders fear Musk might step away if the deal is rejected, many investors see the package as justified. Ark Invest CEO Cathie Wood, for instance, maintains a $2,600 Tesla price target by 2029 — a projection roughly aligned with the proposed market cap.

However, not all major stakeholders agree. Norway’s sovereign wealth fund, which owns about 1.2% of Tesla, has expressed opposition to the deal, reflecting broader concerns about executive compensation and governance.

Author’s summary: The fate of Tesla’s ambitious valuation targets and Elon Musk’s leadership may hinge on whether shareholders approve his record-breaking compensation plan.

Fool UK — 2025-11-06