Elon Musk has issued an ultimatum to Tesla shareholders, declaring that he will leave the company if they do not approve a new compensation package worth up to $1 trillion over the next decade. The company’s Board of Directors must now make a crucial decision regarding the proposal, which would allow Musk to increase his stake in Tesla from 13% to 25%. The compensation would be granted in stages, tied to a $500 billion increase in the company’s market capitalization at each milestone.
Musk has also expressed his desire for greater control over the company and spoke about his long-term vision to build a “massive robot army.” His statements reveal two key concerns: first, securing more influence over Tesla’s shares, and second, ensuring he retains a decisive role as the company develops humanoid robots. Musk stated:
“If I’m building a massive robot army, could someone in the future push me aside? If we create that robot army, will I at least have strong influence over it? Not control—just strong influence. If I don’t have that influence, I won’t feel comfortable creating it.”
The proposed package depends on Musk achieving several ambitious goals. He would receive an additional 12% stake only if Tesla’s market capitalization reaches $8.5 trillion (currently just over $1 trillion), adjusted earnings rise to $400 billion by 2035, and the company produces 20 million electric vehicles, 1 million robotaxis, and 1 million Optimus humanoid robots.
Tesla Chairwoman Robyn Denholm stated that “keeping Elon at Tesla and motivating him is fundamental to making Tesla the most valuable company in history.” The annual shareholders’ meeting will be held on November 6, where the proposed compensation package designed to retain Musk will be put to a vote.
