Tesla’s annual meeting arrives on Thursday, and the company keeps sending one loud message to its investors: Elon Musk is worth $1tn.
The company bought online ads to support his huge pay plan. A website, Votetesla.com, shows board leaders praising Musk while dramatic music rises like a superhero movie scene.
But not everyone feels inspired. Many investors seem split, turning the meeting in Texas into a vote on Musk himself. His sharp political shift has also made him one of the most divisive business leaders in the world.
Musk jumped in too. On X, which he owns, he said Tesla’s future could shape the future of humanity. He also boosted posts from powerful supporters, like Michael Dell, Cathie Wood, and his brother Kimbal.
Kimbal called him unmatched in talent. Musk replied with a heart emoji.
Still, critics raise eyebrows. They argue Tesla has lost focus, especially as sales fall.
“It shocks me,” said Ross Gerber, a longtime Tesla investor. “A company struggling to sell cars is spending money to sell a pay package.” He believes Tesla needs to return to basics and sell electric cars again.
The trillion-dollar challenge
This plan does not hand Musk $1tn right away. Instead, he must raise Tesla’s market value from about $1.4tn today to $8.5tn.
He must also bring a million self-driving robotaxis into service, a bold goal after their rocky debut.
If he hits these targets and others, Tesla will give him more than 423 million new shares. At the goal valuation, they would be worth nearly $1tn.
Tesla did not respond to the BBC about its push to rally shareholders.
Not his first pay battle
This battle feels familiar. Tesla once approved a massive pay deal worth tens of billions if Musk boosted the company’s value tenfold. He did it. But in early 2024, a judge blocked the payout because the board was too close to Musk.
Now, the Delaware Supreme Court is reviewing that ruling while Tesla seeks approval for this even bigger deal.
“Tesla does not operate like a normal company,” said Professor Dorothy Lund from Columbia Law School. She said such aggressive campaigning usually happens when companies fear a takeover fight, not for a pay package.
This time, Musk and his brother can vote on the plan, unlike the earlier deal. That gives them more power to push it through.
Musk is already the richest person on Earth. He crossed the half-trillion mark earlier this year. Now, the question hangs in the air: will shareholders hand him a chance to hit a trillion next?