(qlmbusinessnews.com . Wed 5th Nov, 2025) London, UK —
Is Elon Musk Worth $1tn? Tesla's Bold Bet Faces Shareholder Scrutiny Ahead of AGM
In the approach to Tesla's AGM this Thursday, the electric vehicle manufacturer has been tirelessly promoting one principal argument to its shareholders: Elon Musk is indispensable, with a value reaching as high as $1tn.
Utilising digital advertising and launching Votetesla.com, which hosts a video featuring board chair Robyn Denholm and director Kathleen Wilson-Thompson commending Musk, all set against a backdrop of stirring music, Tesla makes its case clear. However, opinions among shareholders seem divided, transforming the AGM in Austin, Texas into a critical assessment of Musk, particularly following his shift towards more conservative political stances, which has significantly polarised opinions about him.
Musk, utilising his platform X, has raised the stakes even higher by declaring Tesla's vital role in the potential future of civilization. He has also highlighted the support of high-profile allies like Michael Dell from Dell Technologies, Ark Invest's CEO Cathie Wood, and his brother Kimbal, a member of the Tesla board, using his widespread social media influence.
Kimbal Musk has openly praised his brother's unparalleled leadership skills, to which Elon Musk humbly responded, “Thanks bro.”
However, not everyone shares this sentiment.
Critics, such as Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, argue that Tesla’s emphasis on Musk's remuneration diverts focus from its core mission of selling electric vehicles, especially at a time when sales are waning.
“What's astonishing is a company, currently facing challenges in car sales, is expending resources on promoting an executive pay scheme,” Gerber pointed out, signalling his disillusionment with the company's current direction by reducing his Tesla investments.
The contentious deal proposed to shareholders aims not to provide Musk with a $1tn salary but to set ambitious targets for him, including raising Tesla’s market valuation to $8.5tn from its current $1.4tn. Success in meeting these targets, such as deploying a million commercial “Robotaxi” cars, would see Musk receiving 423.7 million new shares, potentially worth nearly $1tn.
Controversies surrounding Musk's compensation are not new. Previous shareholder agreements had ratified vast pay packages for Musk, contingent upon considerable increases in Tesla's market valuation. Although these milestones were achieved, a Delaware judge later rejected the deal, questioning the board members' impartiality due to their close ties with Musk. The decision is now under review by the Delaware Supreme Court even as discussions about the current, even more substantial, package are ongoing.
Columbia Law School Professor Dorothy Lund noted the abnormal nature of Tesla's aggressive campaign, highlighting it as indicative of Tesla's broader issues with corporate governance, rather than just a unique compensation case.
Proxy advisory firms Glass Lewis and Institutional Shareholder Services (ISS) have advised against the proposal, citing concerns about its excessiveness and potential dilution of shareholder value. Major institutional investors, including Norway’s sovereign wealth fund and the US's largest public pension fund CalPERS, have also voiced objections.
As Tesla’s AGM looms, the spotlight intensifies not just on Musk’s contentious pay package but on his continued capability to steer Tesla towards its innovative goals despite growing scepticism and the polarising nature of his public persona. With Musk's reputation and Tesla's future at stake, shareholders are faced with a trillion-dollar dilemma.
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