Elon Musk Threatens to Exit Tesla Over $1 Trillion Pay Package Dispute
Tesla’s billionaire CEO Elon Musk has once again placed himself—and the company—at the center of global attention after warning he could walk away if shareholders fail to approve his record-breaking $1 trillion pay package ahead of the annual meeting on November 6, 2025.
The plan, one of the largest in corporate history, would grant Musk up to 12% of Tesla’s stock if the company reaches a market valuation of $8.5 trillion. The proposal has ignited intense debate about executive compensation, corporate governance, and Musk’s grip on Tesla’s future.
Tesla Board Backs Musk’s Leadership
Tesla’s board, led by Chair Robyn Denholm, has publicly supported the plan, calling Musk “irreplaceable.” Denholm said the package is designed to motivate Musk for at least seven more years, ensuring his commitment to Tesla’s long-term growth, especially in AI-driven mobility and automation.
“Without this plan, Tesla risks losing Musk’s time, talent, and vision,” Denholm said in a letter to shareholders, underscoring that Musk’s leadership remains central to Tesla’s success.
Critics Warn of Corporate Imbalance
Despite board support, critics and advisory firms are urging shareholders to reject the proposal. Glass Lewis, a leading proxy advisory firm, called the package “excessive and risky”, warning it could dilute existing shares and undermine board independence.
This backlash comes just months after a Delaware court invalidated Musk’s 2018 compensation plan, worth $56 billion, citing governance flaws. The new proposal, critics argue, demonstrates Tesla’s continued overreliance on Musk’s persona rather than sustainable leadership.
Former Tesla investor Romain Hedouin called the plan “unnecessary and extravagant,” saying Tesla could thrive under different leadership at a much smaller cost.
Musk’s Control and AI Ambitions
Musk has insisted that Tesla’s direction—particularly its ventures in artificial intelligence and robotics—depends on maintaining around 25% ownership to prevent the company from drifting away from his vision.
According to company filings, Musk’s latest proposal ties his rewards directly to achieving record-breaking performance milestones, arguing it serves as a bold incentive that could push Tesla to new heights.
However, detractors caution that granting such vast control to one executive risks undermining shareholder democracy and setting a dangerous precedent for corporate governance.
A Defining Moment for Tesla
As the November 6 shareholder vote approaches, Tesla faces a pivotal decision: whether to endorse Musk’s trillion-dollar vision or assert limits on executive power and pay.
Whatever the outcome, one thing is clear—Tesla’s future once again hinges on the man who built it.
