Is Musk's big payday make-or-break for the Tesla share price?

Is Musk's Big Payday Make-or-Break for Tesla's Share Price?

The question troubling investors is how much Tesla should pay Elon Musk if he can increase the company's share price almost sixfold over the next decade. The Tesla (NASDAQ: TSLA) stock has been rising ahead of the company’s annual shareholder meeting on November 6, where a proposed executive pay package tops the agenda.

The plan, valued at up to $1 trillion, centers on a performance-based stock award rather than cash. It would only reach its full value if Musk achieves a series of ambitious growth targets for Tesla, potentially boosting the company’s market capitalization to $8.5 trillion from the current $1.5 trillion.

“My fundamental concern … if I go ahead and build this enormous robot army, can I just be ousted at some point in the future?“ — Elon Musk

For Musk, the issue extends beyond financial compensation. He seeks to secure influence over the company’s long-term vision. Some shareholders fear he may leave if the board rejects the package.

Supporters, such as Ark Invest CEO Cathie Wood, believe Musk’s leadership justifies the cost. Wood previously issued a $2,600 price target for Tesla by 2029, a figure closely aligned with the performance goals outlined in the proposal. Meanwhile, dissenters—including Norway’s sovereign wealth fund, which owns 1.2% of Tesla—have voiced clear opposition.

Summary

If approved, Musk’s vast pay deal could cement his influence over Tesla’s future, but disagreement among major investors leaves the company facing a crucial crossroads.

Fool UK — 2025-11-06

Is Musk's Big Payday Make-or-Break for Tesla's Share Price?

Summary

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