Elon Musk warns he could quit Tesla if investors don’t approve his massive $1 trillion pay deal

elon musk

Elon Musk, the billionaire who turned Tesla into one of the world’s most valuable carmakers, might walk away from the company if shareholders don’t approve his massive $1 trillion pay package.

In a letter to investors on Monday, Tesla Chair Robyn Denholm warned that Musk’s continued leadership depends on this new compensation plan. The appeal comes just days before Tesla’s annual shareholder meeting on November 6, where the proposal will be put to vote.

Denholm said Musk’s “time, talent and vision” are critical to Tesla’s success, especially as the company tries to become a global leader in artificial intelligence and autonomous driving technology. She stressed that the plan is designed to keep Musk focused on Tesla for at least the next seven and a half years.

The proposed package would give Musk 12 sets of stock options tied to ambitious goals, such as Tesla reaching a market value of $8.5 trillion and achieving major progress in self-driving cars and robotics. The company argues that the deal will link Musk’s rewards directly to Tesla’s long-term growth and shareholder value.

However, not everyone is convinced. Prominent advisory firms and investor groups have urged shareholders to vote against the proposal, saying it’s excessive and that Tesla’s board isn’t independent enough to negotiate fairly with Musk. Critics say the board has often acted in Musk’s interests rather than shareholders’.

This isn’t the first time Tesla has faced backlash over Musk’s pay. Earlier this year, a Delaware court struck down his 2018 pay deal, ruling that it was improperly awarded by a board too closely tied to the CEO.

Meanwhile, Musk himself has been on a charm offensive. During Tesla’s latest earnings call, he interrupted his CFO to personally urge investors to support the plan. He also took aim at the advisory firms opposing it, joking, “There needs to be enough voting control to give a strong influence, but not so much that I can’t be fired if I go insane.”

For now, the future of Tesla — and Musk’s role in it — hangs in the balance. If shareholders vote down the proposal, the company could risk losing the man many see as its driving force. But if they approve it, it would be one of the biggest pay packages in corporate history.