Tesla shareholder meeting updates: Elon Musk's $1 trillion pay package is on the line

Tesla is at a critical crossroads as shareholders prepare to vote on Elon Musk's staggering $1 trillion compensation package. The highly anticipated annual meeting is set for Thursday afternoon at 4 p.m. ET, taking place at the company's Austin headquarters. A select number of shareholders have been invited to attend in person, while others will cast their votes on several key proposals. Among the most contentious issues is Musk's pay package, alongside discussions about potential investments in his AI venture, xAI. Shareholders will also deliberate on whether to reserve Tesla shares to attract top talent, which includes allocating 208 million shares to address uncertainties stemming from Musk's previous pay plan, currently entangled in legal disputes after being overturned by a judge. To unlock the full $1 trillion value of his compensation, Musk must meet several ambitious benchmarks. These include increasing Tesla's market valuation to $8.5 trillion by 2035, achieving annual vehicle sales of 12 million, and deploying one million robotaxis as well as one million humanoid robots. The proposal has drawn significant scrutiny, with proxy advisory firms ISS and Glass Lewis recommending that shareholders reject it. Recently, Norway's Norges Bank Investment Management, which oversees a $2 trillion sovereign wealth fund and ranks as Tesla's sixth-largest institutional shareholder, also opposed the package due to concerns regarding Musk's potential influence on the company. Musk has publicly criticized the proxy advisory firms, labeling them as "corporate terrorists," while Tesla's board chair, Robyn Denholm, cautioned shareholders in an October letter that Musk might consider leaving the company if his pay is not approved. Despite a recovery from earlier stock declines, Tesla faces challenges ahead, particularly with the expiration of the EV tax credit in the U.S. and rising competition from other manufacturers. In anticipation of the meeting, Tesla has ramped up its promotional efforts, including advertisements on X.com and videos detailing voting recommendations, with Denholm making media appearances to advocate for Musk's compensation. The message from Tesla emphasizes the importance of shareholder participation: "The Future of Tesla Is in Your Hands," the company states on its dedicated voting website. The proposals presented by the Special Committee and the Board are framed as pivotal for determining the company's trajectory moving forward. Stakeholders are urged to act swiftly if they believe Musk is the right leader to bring Tesla's ambitious goals to fruition.