Tesla Board Tells Shareholders: Approve Elon Musk’s Massive Pay Package—or Risk His Departure

The board of Tesla, Inc. has delivered a high-stakes ultimatum to its shareholders: approve CEO Elon Musk’s proposed compensation package—potentially worth up to US $878 billion in stock—or prepare for the possibility of his exit from the company. The vote is set for later this week.

In a formal request to investors, Tesla’s leadership framed Musk as essential to meeting the company’s ambitious future goals—ranging from full autonomy and robotaxi fleets to massive AI and robotics development. The board warned that rejecting the compensation plan could jeopardise Tesla’s valuation and strategic momentum.

The proposed deal ties Musk’s rewards to performance thresholds that would see Tesla’s market value rise to around US $8.5 trillion, with Musk owning approximately a quarter of the company if all targets are met. Critics have slammed the size of the package, expressing concern about dilution, governance oversight and over-dependence on one leader.

Analysis / Impact:
This vote is more than an executive-pay decision—it’s a referendum on corporate governance, CEO power and strategic vision in one of the world’s most closely watched companies. On one side, supporters argue that Musk’s track record of disruptive innovation makes such a package justified. On the other, opponents warn of unhealthy concentration of power, shareholder dilution and risk if Musk diverts attention to his other ventures.

For Tesla, the outcome could determine whether it remains led by its controversial founder and visionary, or enters a new chapter of leadership change—either scenario likely to move markets. For investors and governance watchers, the case provides critical insight into how boards navigate balancing founder influence with accountability and the distribution of risk.