Tesla shareholders will vote on November 6 to decide whether to approve Elon Musk’s proposed $1 trillion compensation package.
The plan, supported by Tesla board chair Robyn Denholm, links Musk’s pay to performance milestones. It includes 12 tranches that depend on Tesla reaching a market value of $8.5 trillion, up from the current $1.1 trillion.
Operational targets include delivering 20 million vehicles, putting one million robotaxis on the road, and building one million humanoid robots over the next ten years. If all goals are met, Musk’s stake in Tesla could rise from 13% to about 25%.
Tesla shares closed up 7.36% on Friday at $395.94, though the stock is down about 2% for the year.
The proposal has sparked mixed reactions. Some analysts, including Morgan Stanley’s Adam Jonas, say the plan benefits shareholders by linking rewards to Tesla’s growth in robotics and autonomous driving.
Others, including Senator Bernie Sanders and New Mexico State Treasurer Laura Montoya, have criticized the package as excessively large.
The board also addressed Musk’s security. After recent high-profile attacks, concerns over CEO safety have grown. Musk spends about $3.3 million annually on security, far less than Meta CEO Mark Zuckerberg’s $23.4 million.
The proposed package includes enhanced security measures and a succession plan. Musk must stay with Tesla for at least 7.5 years under the terms of the plan.
Wall Street currently gives Tesla a Hold rating, based on 33 analyst reviews. The average price target of $311 implies a potential 21% drop from current levels.
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