Is Musk's Big Payday Make-or-Break for Tesla Share Price?
The Tesla (NASDAQ: TSLA) share price has risen ahead of the company’s annual shareholder meeting on Thursday, 6 November. The main focus is CEO Elon Musk’s proposed pay package, potentially worth up to $1 trillion.
The issue isn’t only the huge sum, but concerns that Musk might leave if the deal isn’t approved. Musk expressed his desire to stay in control:
[translate:“My fundamental concern … if I go ahead and build this enormous robot army, can I just be ousted at some point in the future?“]
The pay is structured as a stock package, which Musk will only fully earn by hitting ambitious performance targets. If he meets these goals within 10 years, Tesla's market capitalization could rise to $8.5 trillion, more than five times the current $1.5 trillion.
Many shareholders support the deal, believing Musk can deliver such growth. Ark Invest CEO Cathie Wood is a notable supporter, with a $2,600 price target for Tesla by 2029 that aligns closely with the $8.5 trillion valuation.
However, some major investors, including Norway’s sovereign wealth fund (which owns 1.2% of Tesla), oppose the proposal.
Despite being known as a car maker, Tesla is increasingly viewed as a robotics innovator.
Summary: Elon Musk's proposed $1 trillion pay package hinges on ambitious growth targets, dividing Tesla investors between optimism and skepticism about the company's future value.
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