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

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

The Tesla (NASDAQ: TSLA) share price has risen ahead of the company’s annual shareholder meeting on Thursday, 6 November. The main focus is CEO Elon Musk’s proposed pay package, potentially worth up to $1 trillion.

This proposal is not simply about awarding a large sum of money, but about a stock package tied to challenging performance goals. If Musk meets these targets within the next 10 years, Tesla’s market capitalization could increase to $8.5 trillion, more than five times its current $1.5 trillion value.

Musk's Control Concerns

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

Musk wants to maintain control and fears losing his position if the deal isn’t approved.

Investor Opinions

Some shareholders support the pay package, believing Musk can significantly boost Tesla’s share price. Ark Invest CEO Cathie Wood, for example, has set a $2,600 price target for Tesla by 2029, aligning closely with the market cap goal.

However, others oppose the plan, including Norway’s sovereign wealth fund, which owns 1.2% of the company.

Summary

The outcome of Musk’s pay proposal could be pivotal for Tesla’s future valuation and his continued leadership.

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Fool UK Fool UK — 2025-11-06

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