Tesla Inc. (NASDAQ:TSLA) could face turbulence ahead as shareholders prepare to vote on Elon Musk’s controversial new pay package on November 6. The proposed plan — potentially worth up to $900 billion — has drawn sharp criticism from unions, shareholder advocacy groups, and major advisory firms.
A coalition of labor unions and public interest groups launched a campaign called “Take Back Tesla”, urging shareholders to vote against Musk’s compensation plan. The movement targets union members and retirement plan holders who may indirectly own Tesla shares, encouraging them to oppose the proposal at the upcoming meeting.
The group argues that the package is “outrageous,” claiming it could make Musk the world’s first trillionaire if he stays at Tesla for 10 years and achieves the required milestones. Under the plan, Musk’s average annual compensation would be nearly $100 billion, dwarfing the pay of any other CEO in corporate history.
According to the Take Back Tesla website, the median Tesla employee earns $57,243 per year. “An employee making that amount would need to work for over 1.7 million years to earn what Elon Musk would make per year under this plan,” the group noted.
The site also points out that reaching the targets of Musk’s plan would make Tesla worth $8.5 trillion, roughly double the $4.5 trillion market cap of Nvidia Corporation (NASDAQ:NVDA) — currently the world’s most valuable company.
“But the annual value of Musk’s trillion-dollar pay package isn’t just twice what Nvidia’s CEO made last year (around $50 million); it’s more than 2,000 times Jensen Huang’s annual salary,” the campaign highlights.
Beyond pay comparisons, the movement accuses Musk of damaging Tesla’s brand through political controversies and claims the board has failed to hold him accountable. “Tesla’s Board of Directors has done nothing to rein in Musk’s distractions or protect shareholders,” the group said.
The campaign is backed by major organizations such as the American Federation of Teachers and the Communication Workers of America, representing around 2.5 million workers. Both are pushing pension funds and institutional investors to vote no on the plan and to reject directors unwilling to challenge Musk’s leadership.
They join Institutional Shareholder Services (ISS) and Glass Lewis, two of the largest proxy advisory firms, both of which have publicly urged shareholders to oppose Musk’s compensation package.
Tesla, however, defends the plan, arguing that Musk’s rewards are entirely tied to shareholder success. “Elon receives nothing unless shareholders win big,” Tesla stated on X (formerly Twitter), adding that ISS’s criticisms “miss fundamental points of investing and governance.”
Musk, in response, referred to ISS and Glass Lewis as “corporate terrorists,” accusing them of acting against investor interests. “They often vote along random political lines unrelated to shareholder value,” he said.
Despite the backlash, Tesla insists that the plan reflects its massive growth under Musk’s leadership and aligns with long-term investor gains. The shareholder vote on November 6 could become one of the most consequential moments in Tesla’s corporate history.