Is Musk's Big Payday Make-or-Break for Tesla's Share Price?
The Tesla (NASDAQ: TSLA) share price rose ahead of the company’s annual shareholder meeting on Thursday, 6 November. Central to the agenda is CEO Elon Musk’s proposed compensation package, which could total up to $1 trillion.
The proposal is not simply about large cash payments but a stock package contingent on ambitious performance targets. If Musk achieves these within the next decade, Tesla's market capitalization is expected to soar to $8.5 trillion, over five and a half times its current value of $1.5 trillion.
[translate:“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 emphasizes his desire to keep control, fearing he could be removed despite his achievements.
Many shareholders support the deal, confident Musk can boost Tesla's share price dramatically. Ark Invest CEO Cathie Wood, who has set a $2,600 stock price target for Tesla by 2029, agrees that such growth is feasible and consistent with the proposed market cap.
However, some major investors oppose the package, including Norway’s sovereign wealth fund, which owns 1.2% of Tesla, viewed here as a robotics developer rather than just a car maker.
Summary: Elon Musk's $1 trillion pay package ties directly to ambitious growth goals, with supporters hopeful it will drive Tesla's value significantly higher despite opposition from some large investors.
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