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

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

How much is it worth to pay Elon Musk if he can nearly six-fold increase Tesla’s share price over the next decade? Ahead of Tesla’s annual shareholder meeting on 6 November, the company’s stock (NASDAQ: TSLA) surged in anticipation of the CEO’s proposed compensation package—potentially valued at up to $1 trillion.

The stakes are high—not just about the money, but concerns that Musk might leave if the deal isn’t approved. Musk expressed a desire to maintain control:

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

The pay package is predominantly stock-based and only realizes its headline value if Musk achieves ambitious performance targets for Tesla. If successful within 10 years, Tesla's market capitalization could reach $8.5 trillion—more than five-and-a-half times its current $1.5 trillion valuation.

Many shareholders support the proposal, believing Musk could drive the share price that high. Ark Invest CEO Cathie Wood is a notable supporter, widely known for her $2,600 price target on Tesla shares by 2029, aligning closely with the market cap forecast. However, some major investors oppose the plan, including Norway’s sovereign wealth fund, which owns 1.2% of Tesla—referred to alternately as a robotics developer.

Author’s summary: Elon Musk's potential $1 trillion pay package hinges on extreme growth targets, sparking debate among shareholders about whether the reward matches the risk.

Fool UK — 2025-11-06

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

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