Big day for Elon Musk: What to expect from Tesla’s shareholder annual meeting

All eyes are on Tesla’s annual shareholder meeting, scheduled for Thursday (November 6), where the future of both Elon Musk and his electric car company will be decided.

From a potential $1 trillion payday to a controversial AI investment, the high-stakes event is shaping up to be one of the most dramatic corporate moments of the year.

Here’s a look at the key issues that could redefine Tesla’s and Musk’s future.

$1 trillion payday

The spotlight is mostly on Musk’s proposed $1 trillion pay package, a deal that could make him the world’s first trillionaire if approved.

Tesla chair Robyn Denholm warned shareholders that rejecting the plan might push Musk to walk away. 

“It comes down to whether shareholders still want to retain Elon as Tesla’s CEO,” she wrote in an October letter.

The package replaces Musk’s $56 billion deal that a Delaware court struck down, citing excessive influence.

However, to earn the payout, Musk must hit bold targets: raising Tesla’s valuation to $8.5 trillion by 2035, selling 12 million cars annually, and producing one million robotaxis and AI bots.

The xAI connection

Another hot topic would be Musk’s push for Tesla to invest in his AI startup, xAI. The tech billionaire claims Tesla should have invested “long ago.”

Founded in July 2023, xAI develops the Grok chatbot for X (formerly Twitter) and has already raised over $12 billion, hitting a $50 billion valuation last year.

In March, Musk merged xAI and X in an $80 billion all-stock deal, further blurring the lines between his empire, dubbed the “Muskonomy.”

Some investors fear Tesla’s money could be used to fund Musk’s growing list of ventures, including SpaceX and Neuralink, sparking debate over corporate boundaries.

Accountability

It should be noted that not everything on the agenda is about Musk. Shareholders will also vote on accountability measures, from linking executive pay to sustainability metrics to auditing for child labour in Tesla’s supply chain.

While New York Comptroller Thomas P. DiNapoli has proposed lowering barriers for shareholder lawsuits, Tesla’s board is urging investors to reject all such motions.