Tesla Stock: Musk’s Historic $1 Trillion Pay Package Faces Fierce Opposition Ahead of Vote
Tesla investors are preparing for one of the most closely watched corporate votes of the year as the company’s annual shareholder meeting kicks off today in Austin, Texas.
Key Takeaways
- Investors to vote on Musk’s potential $1 trillion compensation plan at today’s shareholder meeting.
- Major funds including Norway’s sovereign wealth fund and CalPERS oppose the plan.
- Despite strong Q3 revenue, Tesla’s profits fell on rising costs and lower margins.
The spotlight is firmly on Elon Musk’s proposed compensation plan — a package that could reach an unprecedented $1 trillion if performance targets are met.
Shareholder Vote on Record Compensation
Musk’s new pay proposal, structured around 12 performance-based stock tranches over 7.5 years, would make it the largest executive compensation package in history. Approval would raise Musk’s stake in Tesla to roughly 25%, which he argues is necessary to maintain control as the company accelerates its work in AI, robotics, and energy systems.
“If I go ahead and build this enormous robot army, can I just be ousted at some point in the future?” Musk said during Tesla’s October earnings call. The targets tied to the package would require Tesla to reach an $8.5 trillion valuation within a decade — more than five times its current market cap of $1.5 trillion.
Tesla shareholders are set to decide whether to pay CEO Elon Musk up to $878 billion, the richest executive pay in history by a long shot https://t.co/5RQqBQrYLO 1/5 pic.twitter.com/SR8HkZeYBE
— Reuters (@Reuters) November 6, 2025
Opposition from Major Funds
Some of Tesla’s largest shareholders have already signaled resistance. Norway’s $1.9 trillion sovereign wealth fund, which owns about 1.2% of Tesla, plans to vote against the proposal, citing “the total size of the award” and “lack of mitigation of key person risk.” California’s CalPERS fund shares the same stance.
#Tesla $TSLA shareholder vote on Elon Musk's $1T comp package is TOMORROW (Nov 6)! Key update: Charles Schwab flipped to YES after retail pressure. Norway's NO added drama, but retail support strong. As of Nov 5: #ElonMusk pic.twitter.com/MZA1Ps0fFw
— Dark Stone Capital (@DarkStoneCap) November 5, 2025
Proxy advisers Glass Lewis and ISS also urged shareholders to reject the plan, warning of excessive dilution and potential conflicts of interest among board members. They noted that the board could still approve future stock grants even if Musk fails to meet performance milestones.
Board Elections and xAI Proposal
Shareholders will also vote on the reelection of three directors — Ira Ehrenpreis, Kathleen Wilson-Thompson, and Joe Gebbia — as well as a separate proposal to invest in Musk’s AI startup, xAI. The company’s Grok chatbot has recently been integrated into new Tesla vehicles, but proxy firms argue such operational decisions should not be made by shareholders.
Board chair Robyn Denholm warned investors last week that rejecting Musk’s pay could have far-reaching consequences. “We run the risk that he gives up his executive position, and Tesla may lose his time, talent, and vision,” she wrote.
Tesla’s Q3 Results: Sales Surge, Profits Slide
Tesla’s third-quarter results painted a mixed picture. The company posted record revenue of $28.1 billion, up 12% year-over-year and above Wall Street estimates, driven by record deliveries ahead of the U.S. tax credit expiry.
However, profit margins continued to erode. Earnings came in at $0.50 per share, missing expectations, while net income fell 37% to $1.37 billion. Shrinking margins (down to 18% from 19.8% a year earlier), higher tariffs, and increased R&D spending pressured profitability.
The company’s energy division was a bright spot, climbing 44% to $3.42 billion in revenue thanks to growing demand for Megapack systems and large-scale energy deployments for AI datacenters — including contracts linked to xAI.
Technical Picture: TSLA Shows Strength Ahead of Vote
Tesla’s stock jumped 4% to $462.07 ahead of the meeting, reflecting renewed optimism among retail investors. Technical indicators point to short-term bullish momentum: TradingView’s daily gauge signals a “Buy” rating overall, with 14 of 15 moving averages flashing “Strong Buy.”
The Relative Strength Index (RSI) stands at 57, suggesting moderate momentum without overbought conditions, while the MACD line remains just below the signal line — a potential precursor to an upward crossover if buying pressure continues.
Tesla shares are now trading near their multi-month highs, and a clear breakout above $465 could open the path toward $500 in the coming sessions, depending on how today’s vote unfolds.
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Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
