Tesla Board Warns Elon Musk May Leave Without $1 Trillion Pay Package

Tesla’s board chair, Robyn Denholm, has warned shareholders that CEO Elon Musk could quit if his unprecedented $1 trillion compensation package is not approved at the upcoming annual meeting on November 6, 2025. The package, tied to ambitious goals, is set to be the largest executive pay deal in corporate history if shareholders give it the green light. Elon Musk Tesla trillion pay package

What is the $1 Trillion Compensation Plan?

The proposed package would reward Elon Musk with up to 423.7 million Tesla shares across 12 tranches, but only if Tesla meets aggressive performance targets. These include increasing the company’s market value from around $1.4 trillion today to $8.5 trillion, delivering 20 million vehicles annually, and deploying 1 million robotaxis. Musk’s payout depends entirely on Tesla achieving these milestones.

Why Musk’s Leadership is Crucial for Tesla

Tesla’s board stresses that Musk’s leadership is vital for the company’s transformation into an AI and robotics powerhouse. Chair Robyn Denholm stated that without Musk, Tesla might lose substantial value since much of its worth is based on Musk’s vision. This package is designed to keep Musk engaged and motivated to lead Tesla for at least another 7.5 years.

Opposition to the Pay Package

Despite board support, influential proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis advise shareholders to reject the package due to its size and structure. Tesla has strongly criticized these firms, calling them “corporate terrorists,” and Musk himself has publicly expressed frustration with their influence, emphasizing the package is to maintain control over Tesla’s AI and robotics future.

Legal Issues Surrounding Executive Compensation

This proposal follows legal battles over Musk’s previous $56 billion pay deal, which was invalidated earlier in 2025 by a Delaware court due to concerns over board independence. Tesla is appealing that ruling while proposing this new, performance-based plan to address governance issues.

Shareholder Vote and What Lies Ahead

Tesla shareholders have until November 5, 2025, to vote. The annual meeting on November 6 will reveal whether Musk’s massive pay package will be approved, shaping Tesla’s future leadership and corporate trajectory.