Is Musk's big payday make-or-break for the Tesla share price?
The Tesla (NASDAQ: TSLA) share price rose ahead of the company’s annual shareholder meeting on Thursday, 6 November. The main focus is CEO Elon Musk’s proposed pay package, potentially worth up to $1 trillion.
The issue extends beyond the money itself. There are concerns Musk might leave if the deal is rejected. He emphasized his desire for control:
“[translate: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 package involves stock, contingent on Musk meeting ambitious performance goals for Tesla within the next 10 years. Success would increase Tesla’s market capitalization to $8.5 trillion, more than five times its current value of $1.5 trillion.
Several shareholders believe pushing the Tesla share price so high within that timeline justifies the package. Ark Invest CEO Cathie Wood supports this, having set a $2,600 Tesla price target for 2029, aligning closely with the market cap projection.
However, not all investors agree. Norway’s sovereign wealth fund, which owns 1.2% of Tesla, opposes the proposal.
Interestingly, Musk is viewed not just as a car maker but as a robotics pioneer, underscoring the broader vision behind his compensation plan.
Summary: Elon Musk’s proposed $1 trillion pay package hinges on ambitious Tesla growth targets, sparking debate among investors about the future value and control of the company.
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