Tesla Annual Meeting Preview: Musk’s $1 Trillion Power Play

📢After the U.S. market closes on November 6, Tesla will hold its annual shareholder meeting. The biggest focus: whether Elon Musk’s $1 trillion compensation package will be approved.

If Musk achieves a series of ambitious milestones, he will receive an additional 12% stake — valued at more than $1 trillion. Beyond the enormous financial gain, his ownership in Tesla would rise to 25%, giving him greater control over the company.

The vote follows a “one share, one vote” principle, meaning Musk — Tesla’s largest shareholder — can vote his entire 15% stake. Unsurprisingly, Musk will vote in favor.

✅ Supporters Hold the Upper Hand

Shareholders are split between supporters and opponents of Musk’s record-setting pay deal.

So far, the supporters appear to have the upper hand.

Several major shareholders — including ARK Investment, Morgan Stanley’s Counterpoint Global (Tesla’s sixth-largest shareholder), Schwab Asset Management, and Florida’s public retirement fund — have publicly backed the plan.

💬Tesla’s vast retail investor base is also rallying behind Musk, with influencers warning: “Don’t mess with the retail investor community.”

Wedbush Securities analyst Dan Ives told clients he expects the plan to pass smoothly.

Cantor Fitzgerald noted that more than 50% of shareholders believe Tesla and Musk are “inseparable.”

“If Tesla’s stock goes up sixfold, I’ll make a lot of money. Why should I care how much Musk makes?” said Nancy Tengler, CEO and CIO of Laffer Tengler Investments.“I see a visionary CEO who’s achieved the near impossible before — and is uniquely qualified to run this company.”

As of November 5, Broadridge data showed that 80% of shareholders had voted, with over 55% in favor.

Boston College law professor Brian Quinn described the vote as “essentially a forced one,” since shareholders “cannot afford the loss” if Musk were to leave Tesla.

⚠️ What Happens If It Fails?

Tesla’s board chair Robyn Denholm warned that if the plan is rejected, Musk may see it as a vote of no confidence and could step down as CEO — a devastating blow for a company whose valuation heavily depends on Robotaxi and Optimus prospects.

The Tesla board insists the package is essential to keep Musk focused on Tesla.

Morgan Stanley cautioned that a rejection could trigger a 10% immediate drop in Tesla’s stock price.

If the package fails, Tesla has a “Plan B.” The company had already asked Musk to outline a succession framework when the compensation plan was first designed.

❌ Norway’s Sovereign Fund Opposes — But Likely Can’t Stop It

Some major shareholders, including Norway’s sovereign wealth fund (Tesla’s seventh-largest), oppose the package.

“While we recognize the tremendous value Mr. Musk has created, we remain concerned about the overall size of the award, dilution, and key-person risk,” the fund stated.

However, the fund owns only 1% of Tesla and previously voted against Musk’s pay deal — unsuccessfully.

Other small public pension funds have also voiced opposition but lack meaningful influence.

💰 What’s in Musk’s $1 Trillion Plan?

To unlock the enormous equity reward, Musk must lead Tesla to achieve the following within 10 years:

Raise Tesla’s valuation to $8.5 trillion (nearly 8x its current level); Deliver 20 million vehicles cumulatively; Reach 10 million FSD subscribers and Deploy 1 million Optimus robots.

These goals appear nearly impossible — but never underestimate Elon Musk, a man who has repeatedly defied expectations and reshaped industries.

🤖 Other Key Highlights from the Meeting

Musk is also seeking shareholder approval for Tesla to invest in xAI, his AI startup. He even stated that if it were up to him, the investment would already be done.

Musk warned that if he doesn’t gain more control over Tesla, he might step away from daily operations and fully dedicate himself to xAI.

The meeting logo features the silhouette of the Optimus robot, hinting that Tesla may unveil new developments in its robotics business. Updates on FSD and Robotaxi could also be revealed.

Meanwhile, Tesla is training Optimus robots using a dedicated data collection team.

During eight-hour shifts, human operators repeatedly perform hundreds of simple actions — like picking up cups, wiping tables, or closing curtains —to capture the motion data that trains Optimus to mimic human behavior.

Before each session, workers receive task briefings and manuals to ensure data accuracy.

Each collector must record at least four hours of usable footage per shift.