Is Musk's Big Payday Make-or-Break for Tesla's Share Price?
The Tesla (NASDAQ: TSLA) share price has climbed ahead of the company’s annual shareholder meeting on Thursday, 6 November. One major topic on the agenda is CEO Elon Musk’s proposed pay package, potentially worth up to $1 trillion.
Musk’s Ambition and Concerns
The debate goes beyond the size of the compensation. Many investors worry Musk might walk away if the plan is rejected. He has expressed his strong desire for control and autonomy.
“My fundamental concern … if I go ahead and build this enormous robot army, can I just be ousted at some point in the future?”
The proposed package is not a direct cash payment but a stock-based compensation. Its value depends entirely on Musk meeting ambitious performance milestones over the next decade.
Performance Targets and Valuation
If Musk achieves all the set goals, Tesla’s market capitalization could soar to $8.5 trillion—over five and a half times its current $1.5 trillion valuation. Supporters argue that if Musk can deliver such growth, the reward would be justified.
Investor Opinions Diverge
- Ark Invest CEO Cathie Wood supports the package, citing her $2,600 price target for Tesla by 2029, roughly aligning with the projected market cap.
- Opponents include Norway’s sovereign wealth fund, which holds about 1.2% of Tesla and remains skeptical of the proposal.
Summary
If Elon Musk can meet Tesla’s ambitious growth milestones, his hefty pay package could pay off massively—yet it also tests investor confidence in his leadership and vision.
Author’s Summary: The discussion over Musk’s $1 trillion pay plan reflects the balance between rewarding vision and ensuring accountability at Tesla.