On November 6, 2025, Tesla held its annual shareholder meeting in Austin, Texas, addressing key topics that could profoundly impact the company’s future trajectory. Among the agenda items were CEO Elon Musk’s proposed $1 trillion compensation package and the decision to invest in his emerging AI venture, xAI.
Musk’s $1 Trillion Pay Package Sparks Controversy
The centerpiece of the shareholder meeting was Elon Musk’s unprecedented compensation plan, which could potentially reach $1 trillion if all performance targets are met. If approved, this would set a historic benchmark as the largest executive pay plan globally. Amidst the debate, Musk emphasized that achieving his ambitious goals requires such compensation, noting it would incentivize his long-term commitment to Tesla.
The new pay plan, spanning 7.5 years, includes 12 tranches of stock options. To unlock each tranche, Musk must meet specific performance milestones, including Tesla reaching a market valuation of $8.5 trillion in the next decade. Currently, Tesla has a market cap of $1.5 trillion.
However, not everyone supports the proposal. Norway’s sovereign wealth fund, a significant Tesla investor holding 1.2% of shares, disapproved, citing concerns over shareholder dilution and the package’s size. Similarly, California’s CalPERS pension fund voiced opposition. Proxy advisory firms ISS and Glass Lewis echoed these criticisms, urging shareholders to reject the deal due to its magnitude and possible conflicts of interest.
Supporters Argue the Case for Musk’s Leadership
On the other side of the debate, several stakeholders and retail investors showed strong support for Musk’s ambitious package. Optimists like Nancy Tengler from Laffer Tengler Investments highlighted the potential growth in Tesla’s stock value, which could multiply earnings for long-term investors. Board chair Robyn Denholm warned that rejecting the plan risks losing Musk’s leadership, characterizing his genius and vision as indispensable for Tesla’s continued success.
xAI and Tesla: A New Frontier
Beyond the pay-package debate, shareholders also voted on an investment proposal in Musk’s AI startup, xAI. The startup recently debuted its AI-powered chatbot named Grok, which integrates directly with Tesla vehicles. Musk highlighted the significance of AI in Tesla’s evolution, arguing that an investment in xAI aligns with the company’s forward-looking goals.
Yet, this proposal was met with polarized opinions. While some shareholders acknowledged the advantages of including advanced AI technologies like Grok in Tesla’s ecosystem, others raised concerns about resource allocation and operational focus.
What’s Next for Tesla and Its Shareholders
The results of the Tesla shareholder meeting will set the tone for the automaker’s future. The stakes are high as Musk’s leadership faces increasing scrutiny. With transformative innovation at Tesla’s core, both the $1 trillion pay plan and investment in xAI represent potential turning points in the company’s trajectory.
How to Stay Up-to-Date
As Tesla continues to innovate in the electric vehicle and AI sectors, keeping track of its market movements is critical for potential and current investors. Consider monitoring Tesla’s performance with tools like the Tesla Stock Tracking Tool, which provides real-time stock insights and projections.
In the coming days, Tesla shareholders and market analysts will eagerly analyze the impact of these decisions on the company’s market sustainability and visionary goals.
