Musk and Tesla A crucial moment is approaching.
According to the latest news, the largest public pension fund in the United States... The California Public Employees Retirement System (CalPERS) is planning to vote against Tesla CEO Elon Musk's $1 trillion compensation plan, hindering the company's efforts to award Musk one of the most lucrative compensation packages in U.S. corporate history. Media reports indicate that CalPERS holds approximately 5 million Tesla shares. stock.
According to the schedule, Musk's new compensation plan will be voted on by shareholders next Thursday (November 6). He has previously stated that if the compensation plan is rejected, he may leave Tesla or resign as CEO. Morgan Stanley The warning states that if Musk's compensation plan is rejected at the shareholder meeting, Tesla's stock price could immediately experience a sell-off of more than 10%, casting a shadow over the company's strategic future.
Musk's key battle
According to the schedule, Musk's new compensation plan will be voted on by shareholders next Thursday (November 6). If approved, it will become the largest compensation package in the company's history.
It is understood that this shareholders' meeting will vote on three key proposals, including Musk's compensation plan and stock incentives. Planning and board election.
Some analysts point out that the voting results will be a watershed moment for Tesla, determining its future in areas such as autonomous driving and artificial intelligence. With robots The long-term strategic direction of the track.
If Musk can achieve a series of ambitious revenue and product goals over the next decade, he could receive up to $1 trillion in compensation.
These goals include: reaching a market capitalization of $8.5 trillion for Tesla, selling 12 million vehicles, delivering 1 million humanoid robots , deploying 1 million Robotaxi vehicles, and increasing FSD subscribers to 10 million. Furthermore, Tesla's adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) needs to jump from $17 billion in 2024 to $400 billion, an increase of more than 20 times.
This shows that Musk's compensation plan is not a traditional form of labor remuneration, but rather a high-threshold betting agreement.
Musk himself also posted on social media emphasizing the importance of the vote, stating, "This shareholder vote will determine the future of Tesla, and may also affect the future of the world." He also made it clear that if the compensation plan is rejected, he may leave Tesla or resign as CEO.
The debate surrounding Musk's exorbitant compensation package has reached a fever pitch. Supporters argue that the plan will bind Musk to his commitment to key technologies, ensuring Tesla's long-term competitive advantage. Opponents warn that healthy companies should not tie their future to a single leader, and that over-reliance on individual will could exacerbate strategic risks.
The Florida Board of Governors, which manages over $280 billion in assets, has indicated its support for the compensation package, calling it a “bold, performance-driven incentive.”
Dan Ives, a well-known Wall Street analyst and long-time Tesla bull, also supports Musk's compensation plan. After Tesla announced the plan, he released a report stating that it would help Musk continue to focus on the company and accelerate Tesla's "autonomous and robotic future."
New York State Comptroller Thomas DiNapoli sent a letter to Tesla shareholders urging them to vote against the board and criticizing it for its "concerning lack of independence."
The American Federation of Teachers, along with several unions, state finance officials, and investment firms, called on shareholders this month to vote against the plan, arguing that it failed to ensure Musk remained sufficiently focused on Tesla.
Or plummet by more than 10%
In its latest report, Morgan Stanley warned that if Musk's compensation plan is rejected at the shareholders' meeting, Tesla's stock price could immediately suffer a sell-off of more than 10%, casting a shadow over the company's strategic future.
Morgan Stanley has issued a risk warning regarding the upcoming Tesla shareholder meeting on November 6th. While the market widely expects Musk's massive compensation package to be approved, the report reveals the serious consequences of a potential failure, serving as a quantitative analysis of a significant tail risk.
The report’s core argument is that the failure of the compensation package will be interpreted by the market as a “vote of no confidence” in Musk’s leadership and could immediately trigger a sharp reaction in the capital markets.
Morgan Stanley explicitly warned that this seemingly simple vote was actually a high-stakes gamble concerning the company's future.
The report states, "The failure of the compensation package could be seen as a 'vote of no confidence' in Musk's leadership of Tesla, potentially leading to an immediate sell-off in the stock price (possibly exceeding 10%), casting a shadow over the company's strategic prospects and making our bearish stock price forecast possible. 'Key person risk' and succession issues could be brought to the forefront."
Morgan Stanley analysts believe that Musk is likely to reiterate his demand for greater control, and the company's "talent magnet" effect will face a severe test.
Morgan Stanley believes that Tesla's ability to attract and retain top talent in artificial intelligence , manufacturing, and engineering largely depends on whether Musk can continue to be a dynamic core member of the company's leadership, constantly pushing the boundaries of technology. The failure of its compensation package will undoubtedly shake this fundamental foundation.
(Source: Securities Times)
