What will happen on Thursday from 3 p.m. local time (10 p.m. German time) in Austin, Texas, could be fateful. Then they meet Tesla-Shareholders attend the general meeting and decide what will happen to the group in the coming years: The future of Tesla founder Elon Musk (53), the general direction of the company and the group’s relationship with its shareholders are on the agenda. Observers are even talking about one of the most important corporate votes in recent history – which could have a decisive influence on the price of Tesla shares, which have been clearly on an upward trend again since September.
What’s the deal with Musk’s compensation package?
After a private Tesla shareholder filed a lawsuit, a Delaware court overturned the compensation package for Elon Musk that the Tesla board had proposed in 2018 and approved by shareholders – the so-called $50 billion package. The court based its decision on the inappropriate influence that Musk has on the Tesla board and his close relationships with its members – about which shareholders were not sufficiently informed. As a result, Musk quickly moved Tesla’s headquarters from Delaware to Texas. The Tesla board of directors led by chairwoman Robyn Denholm (62) worked out a new compensation package. The shareholders will now vote on this package at the annual general meeting: It would not only be the largest compensation package of all time, but could make Musk the first trillionaire.
If Tesla achieves certain goals and Musk stays at the top of the company for ten years, he could receive up to 423 million Tesla shares. His share in the company would increase from the current 13 to 29 percent. He would get the shares in several stages, which are usually linked to increments of $500 billion in market value. In addition to the price targets, Musk would also have to achieve ambitious business goals with Tesla over the next seven and a half years: Tesla must deliver 20 million cars, one million Tesla robotaxis must be put into operation and the same number of humanoid robots of the “Optimus” type must be sold and delivered. In addition, annual profit (Ebitda) would have to reach $400 billion. For comparison: In 2024 this was almost 17 billion dollars. Musk recently emphasized that he was less concerned with the money, but rather with increasing his Tesla share to 25 percent – and thus permanently securing his influence in the company.
Is Musk leaving Tesla?
Tesla supervisory board member Denholm is convinced that the compensation plan offers enough incentives to focus Musk’s attention on Tesla. Trump’s political activities and his Trump romance had recently damaged the company. Without the princely compensation package, there is a risk that Musk will give up his CEO position and Tesla will thus lose Musk’s “time, talent and vision”. Then there is a risk of a price collapse, warned Denholm.
The message from the Tesla board of directors was the same with every compensation package: Give Musk what he wants, otherwise Tesla will go down the drain. But the tone of this year’s message is “sharper, more urgent and tinged with excitement,” writes Leverage Shares analyst Violeta Todorova. It remains to be seen whether Musk will actually devote more of his time to Tesla or whether he will focus primarily on his other projects SpaceX, xAI, Neuralink and X.
How are the shareholders positioning themselves?
The influential shareholder advisors ISS and Glass Lewis recently called on investors
to reject the proposal for the new compensation package. No CEO should exercise unrestricted influence over a listed company; this would permanently weaken governance standards. Critics also point to the statutes that were changed after the company moved to Texas: These only allow shareholders who own 3 percent of the shares to file derivative lawsuits. Observers see shareholder rights weakened as a result; only three investors in Tesla can currently overcome this hurdle: The Vanguard Group holds 7.6 percent, Blackrock 6.2 percent and State Street Corporation 3.4 percent of the shares.
The largest public pension fund in the USA CalPERS, as well as the state pension fund new York hold 5 million and 3 million Tesla shares, respectively. Both recently said they would reject the proposal. Most recently, the largest sovereign wealth fund in the world positioned itself the Norwegian oil fund, against the share package. While they appreciate the added value that Musk has created with his visionary role, they are concerned about the unprecedented level of compensation proposed.
“Tesla must keep its biggest asset, Mr. Musk, as CEO.”
Analyst Dan Ives
On the other side are the Tesla fanboys around Wedbush Securities analyst Dan Ives, who blindly follow Musk and swear unconditional loyalty to him. “This is an expensive compensation package, but Tesla must keep its biggest asset, Mr. Musk, as CEO,” Ives told CNN in September
. Cathie Wood (69), head of the ARK investment fund, is counting on this “super-exponential growth”
when the package is accepted.
My company, @atreidesmgmt, will be voting in favor of Elon Musk’s performance-based compensation package.
And I would prefer that *every* company I invest in have a comparable plan.
I believe shareholders should generally support thoughtfully structured performance-based CEO…
— Gavin Baker (@GavinSBaker) October 30, 2025
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“For Tesla, the result could define its strategic path for the next decade,” writes analyst Todorova. Either Musk cements his position as one of the most powerful corporate leaders in the world – or a leadership vacuum arises at the car manufacturer. At the same time, a debate is underway in the USA as to whether enormous compensation packages for company bosses are really necessary to motivate visionary founders – or whether they are rather an expression of a dangerous concentration of power.
What about Musk’s visionary projects?
The goals tied to Musk’s compensation package seem extremely ambitious. The Sales figures in the third quarter of this year Although prices have jumped sharply, this can be explained by the expiry of government funding: many buyers wanted to take the bonus with them quickly. Despite record sales, profits plummeted. If Musk has his way, car sales will no longer be of great importance at Tesla in the future; rather, the company’s future lies in robotaxis and humanoid robots. Shareholders on Thursday will be particularly interested in how Tesla management plans to achieve these goals.
What is the situation with autonomous driving and robotaxis?
At the end of October, Morgan Stanley analyst and Tesla bull Adam Jonas called it according to a Market Watch report
Tesla’s problems with autonomous driving as “solved”. The software is so good that the safety driver can be removed from the vehicles. Musk had previously been in a similar situation Telephone conference on the third quarter financial figures
He said he plans to use the robotaxi service without a safety driver in certain areas of Austin. The program is also expected to serve ten metropolises by the end of the year. In Austin, the number of robotaxis is expected to increase to 500 vehicles. The statements had recently contributed to Tesla’s price rally – for years investors have been hoping for a successful “Full Self Driving” program from Tesla, which could be significantly cheaper than that of the competition because it does not use lidar and radar.
Tesla investors have been waiting for years for the start of production of the Cybercab, a two-seater car that will consistently rely on autonomous driving. Most recently, Musk called in an episode of Joe Rogan’s podcast
End of 2026 as a possible start of production. The car should actually work without pedals and steering wheel, Denholm recently said However, he has concerns about Bloomberg
.
Enlarge image
With or without a steering wheel? According to Elon Musk, Tesla’s Cybercab will go into production at the end of the year, without a steering wheel or pedals
Photo: Brendan McDermid / REUTERS
Will Tesla become a robot company?
In addition to the robotaxis, the “Optimus” project is the central component of Musk’s Tesla strategy. Musk said on an analyst call in January that the robotics division would one day “represent the majority of the company’s value.” In the medium term, humanoid robots are intended to take on dangerous, monotonous or boring tasks in industry and in everyday life. Tesla originally wanted to produce at least 5,000 robots this year and sell them to other companies from 2026, these are the plans according to a report by The Information magazine
but has initially been reduced to 2,000 production units: the construction of the hands of the third generation of “Optimus” would cause problems, and the departure of Tesla’s robot technology boss, Milan Kovac, in June left a gap.
Enlarge image
Tesla’s future? A second generation “Optimus” robot
Photo: Giovanni Cancemi / Depositphotos
Are new Tesla models coming?
Another point that should interest shareholders is Musk’s recent announcements regarding a Tesla Roadster, the unveiling of which – like so many Tesla projects – is long overdue. In the Rogan podcast, Musk announced that the model would be presented in the coming months. Musk loudly announced that the Roadster would accelerate to 60 miles per hour (approx. 97 kilometers per hour) in 1.1 seconds and maybe can even float
.
More on the topic
No matter what shareholders decide, Tesla investors from around the world will be looking to Austin on Thursday. Analyst Todorova expects a response from the markets. “An approval could boost Tesla shares,” she writes, especially if Musk places an even greater focus on AI in the future. A rejection, however, could “lead to uncertainty and put pressure on tech stocks.”