Elon Musk warns he could quit Tesla if $1 trillion pay deal fails — “Do you want to keep Elon as CEO?”
Tesla pressures investors as Musk demands record compensation amid falling sales and growing China competition.
Elon Musk is threatening to step down as Tesla CEO if shareholders reject his record-breaking $1 trillion compensation package, News.Az reports, citing foreign media.
Tesla’s board warned in a letter to investors that Musk is “vital” to the company’s future — and losing him could cause a sharp drop in value and investor confidence.
“The question for shareholders is simple: Do you want to retain Elon as Tesla's CEO and motivate him to make Tesla the most valuable company in the world?” the letter reads.
Board Chair Robyn Denholm said Musk’s “unique skills” are critical for driving Tesla’s next phase — especially in autonomous vehicles, robotaxis, and AI-powered systems.
The proposal ties Musk’s $1 trillion compensation to long-term milestones, including:
20 million vehicles sold by 2035
1 million robotaxis and bots produced
10 million Full Self-Driving (FSD) subscriptions
Musk must also approve a CEO succession plan, keeping him at Tesla for at least 7.5 more years.
This isn’t Musk’s first clash with Tesla shareholders. In 2018, the SEC sued Musk for tweeting he would take Tesla private at $420 per share — a claim regulators said misled investors.
Now, Tesla faces mounting pressure as sales fall and competition from China’s BYD intensifies. BYD overtook Tesla in 2024, selling 1.78 million electric cars to Tesla’s 1.77 million.
Tesla sold 1.79 million vehicles in 2024, slightly down from 1.81 million in 2023. But in Europe, sales plunged — falling by 76% in Germany and by half overall in early 2025.
Analysts say Musk’s polarizing political activity, including his support for far-right figures, has also damaged Tesla’s brand image in Europe.
Despite Tesla’s struggles, Musk remains the world’s richest person, with a net worth exceeding $500 billion, fueled by his holdings in Tesla, SpaceX, and xAI.
However, his $1 trillion compensation package — the largest in corporate history — has divided Wall Street. Critics argue it’s excessive, while supporters say it’s necessary to keep Musk focused on Tesla’s long-term innovation.
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