Investors in Tesla are actively campaigning against a proposed pay package for CEO Elon Musk during the upcoming shareholder meeting set for November 6. This plan, unveiled recently, could be valued at approximately $1 trillion.
Details of Musk’s $1 Trillion Pay Package
To unlock the full pay package, Musk is required to elevate Tesla’s market capitalization to $8.5 trillion within a decade. He must also achieve significant benchmarks, including:
- Annual earnings of $400 billion.
- Production of one million Optimus robots.
- Delivery of 12 million electric vehicles by 2035.
Tesla’s board has stated that the pay plan is contingent upon performance, meaning Musk will not receive any compensation unless he meets these ambitious objectives.
Investor Concerns
Despite the board’s assurances, several investors, including SOC Investment Group and the American Federation of Teachers, have expressed their concerns. They feel that the board is not holding Musk adequately accountable for his leadership. Critics argue that Musk’s involvement in other ventures has distracted him from his responsibilities at Tesla.
Additionally, they have pointed out the board’s failure to intervene when Musk took a position in the U.S. Department of Government Efficiency, which they believe negatively impacted Tesla’s reputation and its operational performance.
Board Relationship with Musk
Investors argue that the board is too closely aligned with Musk, both personally and professionally. They also question the rigor of the targets set in the pay package, suggesting they may not be as challenging as perceived.
Tesla’s Market Performance
Recent sales figures add weight to these concerns. In the first half of 2025, Tesla experienced a 13% drop in sales compared to the same period in 2024. This decline was even sharper in Europe, where Tesla’s market share for electric vehicles fell from 21.6% to 14.5%.
Although Tesla reported a 7% increase in deliveries, totaling 497,099 vehicles in the third quarter, production remains down year-over-year.
Wall Street Analysts’ Perspective
Looking at analyst evaluations, Tesla’s stock (TSLA) currently holds a “Hold” consensus rating. This assessment is based on the latest data from 14 buy ratings, 12 hold ratings, and eight sell ratings issued over the past three months.
The average price target for TSLA shares stands at $345.28, indicating a potential downside risk of 18.6%.
