Big blow for Elon Musk: Tesla’s top investor opposes $1 trillion payday

Elon Musk is facing a new trouble ahead of Tesla’s high-stakes shareholder vote as one of the company’s biggest investors has opposed his record-breaking $1 trillion pay deal.

The California Public Employees’ Retirement System (CalPERS), the largest public pension fund in the US, has announced that it will vote against Musk’s proposed $1 trillion compensation package at Tesla, calling it “excessive” and “disproportionate to industry standards.”

In a statement, CalPERS argued that the deal “further concentrates power in a single shareholder” and warned that such a structure could weaken Tesla’s corporate governance.

The fund, which holds nearly five million Tesla shares, has long opposed Musk’s outsized pay arrangements, including his $56 billion package last year and a 2018 deal later overturned by a Delaware court.

Meanwhile, Musk has been actively lobbying shareholders ahead of the critical November 6 vote in Austin, Texas.

He claims the proposed 10-year, performance-based compensation plan is vital for maintaining Tesla’s innovation momentum and ensuring his personal stake remains large enough to “drive bold progress.”

If approved, the plan could boost Musk’s ownership to at least 25%, effectively tightening his control over the world’s most valuable electric vehicle maker.

The deal could also potentially make Musk the world’s first trillionaire.