Elon Musk Acquires $1 Billion of Tesla Shares, Enhancing His Staggering $1 Trillion Compensation
In a significant move, Elon Musk has purchased nearly $1 billion worth of shares in the electric vehicle company. The purchase, which took place at prices ranging between $371 and $396, was announced on 15 September, according to filings released by the US Securities and Exchange Commission.
This move has sparked a debate among shareholders, with independent research by ISS Governance suggesting a divided opinion due to Tesla's recent reduction in profit margins and slowing pace of deliveries in key markets. The company's global deliveries slumped by 13% in the first half of 2025.
Dr. Anne McCoy, a corporate governance expert at the University of Michigan's Ross School of Business, has described Musk's share purchase as a 'wager' to restore investor confidence. Robyn Denholm, as Chairwoman of Tesla's Board, has publicly supported Musk's $1 billion stock-based compensation package, which is set to be voted on at Tesla's annual shareholder meeting on 6 November. If approved, the compensation package would be the largest ever awarded to a CEO in corporate history.
The plan consists of twelve tranches distributed across the proposed timeframe. If Musk secures the full payout, he could own around 25% of Tesla, significantly consolidating his influence over board decisions, long-term strategy, and product development. The compensation package ties Musk's potential payout to a series of steep performance milestones, including pushing Tesla's market value to $8.5 trillion.
Tesla, if it cracks full autonomy ahead of competitors, could potentially reach a trillion-dollar valuation. The Tesla CEO's confidence may be tied to the company's AI development pipeline, particularly around its autonomous vehicle platform and proprietary Dojo supercomputer.
The proposal was revealed earlier this month, and it has already stirred controversy among shareholders, with some expressing concerns about the potential concentration of power in Musk's hands. However, the Tesla shares surged by 7.3% in pre-market trading following the announcement, suggesting a positive market reaction to Musk's share purchase and the compensation plan.
As the annual shareholder meeting approaches, the fate of this ambitious compensation package hangs in the balance, with shareholders divided on the issue. The outcome could have significant implications for Tesla's future and Musk's role in shaping the company's direction.
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