The countdown is nearly over. Later on Thursday, Tesla Inc (NASDAQ:TSLA) shareholders gather in Austin for what could be one of the most consequential votes in the company’s history, a meeting that pits Elon Musk’s towering ambitions against growing unease over power, pay, and priorities.
The headline act is Musk’s new pay proposal, a colossal package that could be worth up to $1 trillion if performance targets are met. Musk says the reward reflects his record of innovation and the value he’s created for investors.
Critics, however, see excess. Norway’s $1.9 trillion sovereign wealth fund, which owns about 1.2% of Tesla, has already vowed to vote against the deal, citing its size and the risk of overdependence on a single individual.
The pay plan isn’t the only issue on the ballot. Shareholders will also decide whether to re-elect several directors — including some who helped design Musk’s past compensation packages.
Proxy advisers Glass Lewis and ISS have urged investors to reject those directors and the new pay deal, arguing that both lack sufficient independence and fairness.
Another item stirring debate is Tesla’s potential investment in Musk’s artificial intelligence venture, xAI.
While Musk insists he wants Tesla to work more closely with the startup behind the Grok chatbot, critics fear a conflict of interest, with Musk effectively asking shareholders in one company to bankroll another.
Tesla chair Robyn Denholm has warned that rejecting Musk’s pay could risk losing his leadership altogether, calling him “essential” to Tesla’s success.
But opponents argue no individual, even Musk, should hold so much sway over a public company.
As the world’s most valuable carmaker prepares to decide its future, Thursday’s vote is shaping up as a defining test of Musk’s influence and of how far shareholders are willing to go to keep Tesla’s maverick founder in the driver’s seat.