If some reports are to be believed, Tesla is on the verge of losing its founder and visionary leader, Elon Musk. The most talked-about CEO in the present world has reportedly threatened to walk away from Tesla unless the company approves a jaw-dropping $1 trillion pay package, which has fueled a fierce debate among investors, sparking questions about leadership, loyalty, and the true cost of innovation.
Elon Musk’s Bold Demand
According to recent reports, Musk is pushing for a $1 trillion compensation plan that would give him up to 12% of Tesla’s stock — but only if the company hits a staggering $8.5 trillion market valuation. The proposal comes ahead of Tesla’s crucial annual shareholder meeting on November 6, where investors will decide whether to back the deal or risk losing the man who built Tesla into an electric revolution.
Elon Musk’s Pay Package That’s Dividing Tesla
Not everyone is convinced. Critics say that the plan is excessive and dangerous, with some calling it a “golden leash” that gives too much power to one man.
Tesla Chair Robyn Denholm defended the proposal in a letter to shareholders, saying that Musk’s continued leadership is vital for Tesla’s next phase — particularly as it expands its dominance in AI-driven mobility and automation.
She emphasized that the pay package isn’t just a reward, but a way to “retain and motivate” Musk for the next seven and a half years, keeping his vision tightly aligned with Tesla’s long-term growth.
Denholm warned that without Musk, Tesla risks losing not just a CEO, but the “time, talent, and vision” that propelled it to global fame.
As per reports, Proxy advisory firm Glass Lewis has urged shareholders to reject the proposal, warning that it could dilute existing shareholders’ stakes and raise serious concerns about board independence.
Even some investors are voicing disapproval. Romain Hedouin, a former Tesla investor and employee, described the package as “excessive,” arguing that the company could continue to thrive under new leadership without paying such a steep price.
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Elon Musk’s Defense: “Tesla Is Me”
Musk, however, isn’t backing down. In a post on X (formerly Twitter), he fired back at critics:
‘Tesla is worth more than all other automotive companies combined. Which of those CEOs would you like to run Tesla? It won’t be me.’
A special Tesla committee reportedly met with Musk ten times before reaching the proposal, concluding that his threat to leave was genuine and that keeping him engaged was crucial for Tesla’s future success.
A Turning Point for Tesla
If approved, this $1 trillion pay package could give Musk enormous power — and make him even richer than he already is. Supporters see it as a bold bet on the man who changed the auto industry forever.
Critics view it as a dangerous precedent for corporate governance, where one personality overshadows an entire company.
Disclaimer
This article is based on publicly available information and media reports. Readers are advised to follow official Tesla filings and announcements for verified updates.
Kangkan Kishor Sharma, an M.A. in Media and Journalism, serves as the Chief Contributor at NestOfNews.com. He contributes regularly, bringing insight, passion, and a deep commitment to delivering stories that truly matter. His work reflects a thoughtful understanding of media, storytelling, and the issues shaping today’s world.