Tesla Faces Shareholder Vote on Elon Musk's $1 Trillion Compensation Proposal Amid Record Sales

Tesla CEO Elon Musk faces a shareholder vote on a proposed $1 trillion compensation package that would make him the world's first trillionaire if he achieves aggressive milestones, including boosting Tesla's market value to $8.5 trillion within a decade. While Musk's recent $1 billion stock purchase signals confidence, the plan has drawn significant criticism from unions, progressive groups, and some investors who question its feasibility and the governance risks of such a massive pay deal. Tesla's valuation remains extraordinarily high, trading at about 195 times expected earnings, driven by investor optimism about Musk's vision of Tesla as an AI and robotics leader, despite a trend of declining profitability and challenges in its core electric vehicle business. Tesla recently reported record third-quarter vehicle deliveries fueled by a rush to beat expiring tax credits, but analysts warn of a potential sales drop in the next quarter and remain divided on the stock's valuation. Critics also highlight Tesla's shrinking global market share and stalled ambitions in robotics and autonomous driving, with competitors making more progress in robotaxi development. Supporters like ARK Invest's Cathie Wood defend Musk's compensation plan and criticize proxy advisory firms, underscoring the polarized debate over Tesla's future and Musk's role in it.