Tesla’s board warns Elon Musk could quit if shareholders reject his US$1 trillion pay package, raising questions about leadership and governance. (Photo: Harun Ozalp/Anadolu via Getty Images)
Tesla’s board has issued a stark warning that Elon Musk could walk away if shareholders reject his record‑breaking US$1 trillion pay package. The vote, set for 6 November, has become a defining moment for the company’s future.
Tesla chair Robyn Denholm stressed Musk’s role as “irreplaceable,” arguing that Tesla’s push into artificial intelligence, robotaxis and humanoid robotics depends on his vision. Without him, she warned, Tesla risks losing its edge.
The package would grant Musk 12 tranches of stock options tied to ambitious milestones, including a market capitalisation of US$8.5 trillion. If achieved, Musk’s stake could nearly double from 13 per cent to 29 per cent.
Critics, however, say the board is too close to Musk. A Delaware court earlier struck down his 2018 pay deal, ruling it was improperly awarded and lacked independent oversight.
Musk has had a rollercoaster year, marked by boycotts, plunging earnings and political controversies. Yet Tesla remains central to his ambitions, particularly in AI and robotics.
Defending the deal, Musk said he doesn’t want to “build a robot army here and then be ousted,” insisting the package ensures he retains influence over Tesla’s future.
He also lashed out at proxy advisory firms ISS and Glass Lewis, calling them “corporate terrorists” for urging shareholders to reject the plan.
Already the world’s richest man with a net worth of US$462 billion, Musk insists the package is about control, not cash. “It’s called compensation, but it’s not like I’m going to spend the money,” he said.
Analysts say the vote will test Tesla’s governance and investor confidence. Approving the package could cement Musk’s dominance, while rejection risks a leadership vacuum.
For shareholders, the choice is stark: secure Musk’s loyalty at an unprecedented price, or gamble on Tesla’s ability to thrive without him.
Read on Musk facing $1 trillion Tesla pay showdown here.
