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How much is Elon Musk worth?
That question is at the core of the debate over the Tesla CEO’s proposed pay package. This afternoon, the company will reveal the results of the shareholder vote on the compensation plan, which could be worth up to $1 trillion.
The stakes are high, and not just because we’re talking about a salary that would dwarf most countries’ GDPs. Tesla chair Robyn Denholm warned voting against it could risk Musk leaving the company entirely.
As of this morning, prediction markets have the pay package getting approved as the heavy favorite. But there have been some vocal opponents, including the world’s largest sovereign wealth fund.
So who is for and against the comp package, and what are some of their arguments? Let’s break it down.
For the pay package
Key supporters: Cathie Wood, Wedbush Securities, Charles Schwab
Musk has gotten Tesla investors this far: No CEO and company are more intertwined than Musk and Tesla. Love him or hate him, Musk comes with a legion of fans who have heavily supported Tesla. Over the past five years, shares are up more than 215%. That’s far better than the S&P 500 and roughly equal or better than most of its Big Tech peers.
Tesla is in the middle of a big shift: Losing someone of Musk’s stature is never easy, but it’d be particularly tricky as Tesla pivots from its EV roots to go all-in on AI. It’s a big switch into an intensely competitive field, and having to navigate it with a new CEO at the helm isn’t something shareholders will likely be interested in.
It’s $1 trillion, with a catch: As big as $1 trillion is, the package is contingent on a series of goals, including raising Tesla’s market cap to $8.5 trillion. If Tesla’s valuation were to increase that much over the next decade — it’s currently worth roughly $1.43 trillion — some feel that’s a fair reward for the work Musk would need to do to get there.
Against the pay package
Key supporters: New York State Retirement Fund, American Federation of Teachers, CalPERS
Hitching your wagon to Elon isn’t always smooth: You have to take the good with the bad when it comes to Musk, and recently, the bad has been really bad. Musk’s breakup with President Donald Trump proved to be a real low point for Tesla and its share price. And Musk is unlikely to change his shoot-from-the-hip approach.
A distracted Musk: One of the biggest gripes against Musk is that he’s too busy. His other endeavors — SpaceX, xAI, Neuralink, and The Boring Company — suck up a lot of his time. And the ties between the companies, or his “Muskonomy,” isn’t going anywhere as he calls on Tesla to invest in xAI.
Too much control: A key piece of the package is Musk’s voting stake potentially rising to nearly 29% (he’s currently at about 13%). Musk has been adamant about the need for this as Tesla enters its new era, but some are uncomfortable with someone so powerful getting even more control over the company.
Dan DeFrancesco, deputy executive editor and anchor, in New York. Hallam Bullock, senior editor, in London. Akin Oyedele, deputy editor, in New York. Grace Lett, editor, in New York. Amanda Yen, associate editor, in New York.
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