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?

The Tesla (NASDAQ: TSLA) share price has risen ahead of the company’s annual shareholder meeting on Thursday, 6 November. The main focus is CEO Elon Musk’s proposed compensation package, potentially worth up to $1 trillion.

The debate is not just about the money itself, but concerns that Musk might leave if the deal is rejected. As Musk puts it,

[translate:"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 package is stock-based and only reaches its huge value if Musk meets ambitious performance targets for Tesla over the next 10 years. If he succeeds, Tesla’s market capitalization could climb to $8.5 trillion — more than five-and-a-half times the current $1.5 trillion valuation.

Several investors support the plan, believing Musk's goals could boost Tesla’s stock dramatically. Ark Invest CEO Cathie Wood, for example, is optimistic, forecasting a Tesla share price of $2,600 by 2029, aligning with the market cap target.

Conversely, some major shareholders oppose the proposal, including Norway’s sovereign wealth fund, which owns 1.2% of Tesla, regarded here as a robotics developer.

Author’s summary: Elon Musk’s massive stock-based pay deal hinges on Tesla’s performance, balancing investor optimism with fears of losing their visionary leader.

Fool UK — 2025-11-06

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

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