Tesla shares fell 3 percent this week after a third-quarter earnings miss, highlighting how investor optimism about the company’s future must now contend with performance. Meanwhile, a pivotal shareholder vote on Elon Musk’s pay package—potentially worth $1 trillion—brings governance to the forefront.
Tesla’s most recent earnings reflected both bright spots and deeper concerns. The company returned to year-over-year sales growth, yet its earnings per share fell short of analysts’ expectations. That interplay has prompted a fresh round of debate over how to situate Tesla in the auto industry: as an AI and robotics pioneer, or somewhere in between. Against that backdrop, the company’s upcoming shareholder vote has taken on outsized significance.
The proposed compensation package for Musk, which would unfold over a multi-year horizon and hinge on aggressive performance targets, is at the heart of the tension. As noted by Reuters, proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis have urged shareholders to reject the plan, citing concerns about the plan’s magnitude, dilution of existing owners, and Musk’s commitments across multiple ventures.
On the earnings call, Musk himself addressed the pay vote, saying:
“There needs to be enough voting control to give a strong influence, but not so much that I can’t be fired if I go insane.”
He also dismissed criticisms of the advisory firms as “corporate terrorists,” calling their analyses “asinine.”
Some supporters see this as a bold retention move for a visionary leader. At Wedbush Securities, analyst Dan Ives remains bullish, noting:
Ives describes the company as entering a pivotal period: “We continue to believe Tesla could reach a $2 trillion market cap in early 2026 … and $3 trillion by the end of 2026 as the golden AI chapter takes hold at Tesla.”
Other analysts view the risk profile differently. From JPMorgan Chase & Co., a far more cautious tone:
JPMorgan analysts, in contrast to Wedbush’s bullish approach, caution: “Expansion into higher volume segments with lower price points seems fraught with greater risk relative to demand, execution, and competition.”
The stakes are significant. If approved, Musk’s stake in Tesla could rise to as much as ~25-29 percent, giving him markedly greater control—or at least influence—over the company’s direction.
Yet the backdrop is no simple ramp-up. Tesla’s recent results revealed a drag from tariffs, rising operating expenses, and the end of favourable EV incentives. These pressure points suggest that while the long-term runway is large, the near-term path may be bumpier than many shareholders are willing to tolerate.
The tension between vision and value is what many institutional owners are wrestling with ahead of Tesla’s Nov. 6 annual meeting. Proxy firms have highlighted governance concerns, such as Musk’s multiple ventures (including xAI) and whether his focus remains squarely on Tesla. ISS concluded the proposed award “has an astronomical grant value conditioned upon far-reaching performance targets.”
In public letters and filings, Tesla’s board, led by Chair Robyn Denholm, has pushed a counter-narrative: that Musk’s leadership is indispensable to executing the company’s bold ambition in robotics, autonomy, and AI—and that the pay plan aligns with shareholder value creation. The board reportedly told major investors the package is “an investment, not dilution.”
For Daily News Planet readers, the key takeaway is that Tesla operates on two tracks: as a global automaker and as a tech platform advancing robotaxis, robots, and AI mobility. The upcoming vote will reveal how much investors believe in Tesla’s future—and the risks that come with it.
The vote’s outcome will signal either strong support for Musk’s vision or raise questions about leadership and strategy. Either way, Nov. 6 will reveal not just how the market sees Tesla’s achievements, but its appetite for the company’s ambitious future.
