Tesla Repeating Old Threats To Get Shareholders To Approve Musk’s $1 Trillion Pay Day

Tesla’s committee of board issued a stark informing to shareholders today: approve Elon Musk’s unprecedented $1 trillion salary package aliases consequence losing him arsenic CEO. It’s a acquainted threat, 1 that nan committee has utilized before, and if history offers immoderate clues, it’s apt to activity again.

Tesla’s executive squad is successful afloat lobbying mode successful nan run-up to nan November 6th yearly shareholder meeting, urging shareholders to o.k. their connection to make Musk, already 1 of nan world’s richest people, moreover much unfathomably wealthy. If they don’t, they are informing that he could time off nan institution for greener pastures.

“Without Elon, Tesla could suffer important value, arsenic our institution whitethorn nary longer beryllium weighted for what we purpose to become: a transformative unit reimagining nan basal building blocks of mobility, power and labor, pinch products specified arsenic FSD and Optimus, and moving to amended humanity successful nan process,” Tesla’s committee chair Robyn Denholm said successful a missive to shareholders connected Monday.

With Tesla’s Annual Meeting accelerated approaching connected November 6, Board Chair, Robyn Denholm, sent a missive to shareholders connected nan captious quality of this vote.

The basal mobility for shareholders astatine this year’s Annual Meeting is simple:

Do you want to clasp Elon arsenic Tesla’s…

— Tesla (@Tesla) October 27, 2025

It was essentially, hit for beat, the aforesaid statement she made past year, erstwhile shareholders were being pressured to o.k. a $55 cardinal salary package for Musk. At nan time, it was nan largest compensation package ever considered for a CEO — one, of course, that has since been dwarfed by nan existent payday proposal.

Shareholders approved nan $55 cardinal payout, and they are apt to do nan aforesaid adjacent month, contempt superior misgivings among nan firm governance class. Proxy firms Institutional Shareholders Service (ISS) and Glass Lewis some precocious issued guidance advising shareholders to cull nan package, calling it excessively ample and unduly influenced by a committee that has been shown successful tribunal to beryllium captured by Musk. For his part, Musk called nan proxy firms “corporate terrorists” during Tesla’s net telephone past week.

The stakes are high, fixed nan existent position of Musk’s compensation. Last year, a Delaware tribunal voided Musk’s salary package, weighted astatine much than $50 billion, arguing that nan woody was flawed and unfair to shareholders and that Musk held undue power complete its composition. Shareholders had voted doubly to approve the hefty compensation, but nan judge still upheld her ruling blocking it. Tesla has appealed nan decision to nan Delaware Supreme Court. In response, Musk orchestrated a ballot to move nan company’s incorporation to Texas, which doesn’t person nan decades of firm ineligible precedence for illustration Delaware.

Tesla’s committee is apt emotion assured successful nan result of nan November 6th vote. Musk has bought immoderate of nan company’s stock, and Denholm is giving uncommon interviews to get retired nan vote. Tesla’s 3rd 4th income are up, acknowledgment to consumers eager to declare nan expiring $7,500 taxation credit. If they want a win, nan clip is now. Tesla’s net are apt to turn overmuch worse successful nan quarters to come; Musk himself has admitted this. No much taxation in installments — which Musk shares immoderate of nan in installments successful eliminating — will mean less sales. If Tesla wants to go nan AI and robotics institution that Musk has promised, now is nan time.

Denholm’s missive ignores astir of these challenges. Musk’s governmental broadside projects, his support for President Donald Trump, his spearheading of DOGE, his support for Europe’s acold correct parties, his Nazi salutes astatine Trump inauguration, his determination to fto predetermination deniers and achromatic supremacists backmost connected X… naturally, Denholm doesn’t prosecute pinch these. But by ignoring them, she is doing shareholders a disservice.

The Elon of it each aside, nan aforesaid problems will persist for Tesla. The company’s lineup is aging, its title is growing, and it has yet to show that it’s attack to self-driving will springiness it nan advantage. Regulatory credits are astir to disappear. And tariffs proceed to return a wound retired of nan company’s bottommost line.

Rather than coming a scheme for nan future, Tesla’s committee is urging shareholders to double down connected much of nan same.