Tesla CEO Elon Musk has thrown down the gauntlet ahead of the company’s November 6 shareholder meeting, warning investors to either approve his massive new pay package or risk losing him as the company’s leader.
“Which of those [other] CEOs would you like to run Tesla? It won’t be me,” Musk declared, hinting that he may walk away if shareholders reject the proposed deal.
The vote could shape Tesla’s leadership, governance, and power structure for years to come — and possibly redefine Musk’s dominance within the company he helped build.
Inside the Billion-Euro Battle Over Pay
At the centre of the controversy is Proposal 4, a performance-based compensation plan that could be worth up to €1 trillion, contingent upon Musk meeting a series of ambitious market capitalization and product milestones.
The meeting will also re-run Musk’s 2018 €47 billion pay package, which was voided earlier this year by a Delaware court that found the board of directors had conflicts of interest due to their close ties to Musk.
Following that ruling, Musk relocated Tesla’s incorporation from Delaware to Texas, hoping for a more CEO-friendly regulatory climate.
Proposal 3: A Two-in-One Controversy
Another major point of contention, Proposal 3, combines two unrelated issues:
- Refilling Tesla’s employee stock fund with 60 million shares.
- Granting Musk an additional 208 million shares worth approximately €78 billion, without any performance conditions.
Critics argue that this structure forces shareholders to approve Musk’s personal grant in order to support Tesla employees, effectively holding the stock fund “hostage.”
In total, Musk could end up controlling over 630 million new shares, while Tesla’s entire workforce receives just 60 million — raising concerns about fairness and corporate ethics.
Musk’s Quest for Power
After selling large portions of Tesla stock to finance his $44 billion acquisition of X (formerly Twitter), Musk’s ownership in Tesla fell from 25% to 13%. He has since said he “doesn’t feel comfortable” with his reduced stake and wants to restore his 25% control — a level that would enable him to block shareholder reforms and retain veto power over the board.
Musk has also implied that if his demands aren’t met, Tesla’s key AI and robotics projects could be shifted to his other privately held companies, such as xAI or SpaceX.
The Stakes for Tesla
Tesla’s stock, though still trading at high valuations, has seen declining vehicle sales and shrinking profit margins amid rising global competition. Analysts attribute part of this slide to Musk’s distractions — particularly his political statements and time spent managing X — which have at times alienated consumers and investors.
In a rare move, Tesla has even launched an advertising campaign, not to sell cars, but to rally shareholder support for Musk’s compensation package ahead of the vote.
Investor Dilemma
The upcoming shareholder meeting presents investors with a defining choice:
- Approve one of the largest executive pay packages in corporate history, or
- Risk losing the visionary — and volatile — leader credited with transforming Tesla into a global electric-vehicle powerhouse.
As one analyst told Bloomberg, “Musk knows Tesla’s greatest product is himself — and he’s pricing that accordingly.”
Originally published on newsworldstime.com.
Originally published on 24×7-news.com.
