Elon Musk’s $1 trillion moment? Tesla shareholders to decide his path to trillionaire status

The decision will be made during Tesla’s annual general meeting at its Austin, Texas factory, a pivotal moment that could define Musk’s continued role in the electric car company’s future.

According to CNN, the plan involves a massive stock-based payout that could grant Musk up to 423.7 million new Tesla shares over the next ten years — a stake potentially worth $1 trillion if Tesla’s market valuation reaches $8.5 trillion.

That figure represents a 466% leap from Tesla’s current worth and is roughly 70% higher than Nvidia’s recent $5 trillion valuation.

Tesla chair Robin Denholm has staunchly defended the plan, stressing that Musk’s leadership is crucial for the company’s progress in artificial intelligence, autonomous driving, and robotics.

“Without Elon, Tesla could lose significant value,” Denholm wrote in an October 27 message to shareholders, quoted by AFP.

If approved, the package would boost Musk’s ownership in Tesla from around 12% to over 25%, consolidating his control over the company.

Musk has hinted that he may “pursue other interests” if shareholders reject the plan.

“It’s not like I’m going to spend the money,” he said on a recent investor call. “It’s just that if we build this robot army, I want to have at least a strong influence over it.”

Musk envisions Tesla’s future far beyond electric cars — toward self-driving vehicles, robotaxis, and humanoid robots — a transformation he claims could make Tesla “the most valuable company in the world.”

Supporters maintain that Musk’s vision and risk-taking have been the driving forces behind Tesla’s meteoric rise.

“Shareholders are going to support this overwhelmingly,” CNN quoted Wedbush Securities analyst Dan Ives as saying.

But the compensation proposal has sparked strong resistance from some institutional investors and proxy advisory groups.

Norway’s sovereign wealth fund, one of Tesla’s largest shareholders, announced it would vote against the deal, citing its “size, dilution and lack of mitigation of key person risk.”

Proxy advisory firms Glass Lewis and Institutional Shareholder Services (ISS) also urged investors to reject the plan, calling its performance benchmarks “vague and undemanding” and warning it could erode shareholder value.

Still, many analysts expect the proposal to pass, given Musk’s cult-like following among retail investors.

The company’s previous compensation plan was approved by 84% of shareholders.

Critics call plan excessive, unfair

Yet critics continue to question whether any individual should receive such a massive payout.

“If you get a trillion dollars over 10 years, that’s $275 million a day,” said Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, as quoted by CNN. “I don’t know anybody who thinks that’s fair.”

Meanwhile, activists are preparing demonstrations outside Tesla’s Austin gigafactory on the day of the vote.

“A trillion dollars is way too much for any person under any circumstances,” said protester Ethan McBride, according to AFP.