Elon Musk has put Tesla shareholders in a tough spot: approve his enormous new pay package or risk losing him as CEO. “Which of those [other] CEOs would you like to run Tesla? It won’t be me,” Musk warned, ahead of the crucial November 6 shareholder meeting that could redefine Tesla’s future leadership and power balance.
Tesla is worth more than all other automotive companies combined. Which of those CEOs would you like to run Tesla?
It won’t be me.
— Elon Musk (@elonmusk) October 19, 2025
The Billion-Euro Battle Over Pay
At the centre of the storm is Proposal 4, a performance-based compensation plan potentially worth €1 trillion if Musk meets a series of ambitious market and product goals. The vote also includes a re-run of his 2018 €47 billion package, which was invalidated by a Delaware court for being pushed through by a board packed with Musk’s friends and family. Following that setback, Musk moved Tesla’s incorporation to Texas, where he hopes for more control.
Another contentious element, Proposal 3, links two separate issues: refilling Tesla’s empty employee stock fund with 60 million shares, and granting Musk a special reserve of 208 million shares worth around €78 billion, with no performance conditions. To approve the employee pool, shareholders must also approve Musk’s reserve.
Critics say the company is holding the employee stock fund “hostage” after already diverting €22 billion from it for an “Interim Award” to Musk. In total, the proposals could hand him more than 630 million new shares while the entire workforce gets only 60 million.
Musk’s Quest for Power
After selling Tesla stock to fund his purchase of X, Musk’s ownership fell from 25% to 13%. He has said he “doesn’t feel comfortable” with his current stake and wants to regain 25% control, a level that would let him block shareholder reforms aimed at increasing accountability.
He’s also hinted that without it, Tesla’s key AI and robotics projects could move to his other private companies.
The Stakes for Tesla
Tesla’s electric vehicle sales and profits have been sliding, and analysts blame Musk’s distractions and public behaviour for hurting the brand. Still, the stock remains overvalued thanks to investor faith in Musk’s promises of robotaxis and humanoid robots.
Now, Tesla has even launched ad campaigns, rare for the brand, not to sell cars, but to convince shareholders to back Musk. As the November vote nears, investors face a stark choice: risk the company’s most valuable showman or reward him with one of the biggest paydays in corporate history.
