Tesla’s $1T Musk Pay Proposal Poses Stock Risks, BofA Warns
Tesla’s board proposal to award CEO Elon Musk an incremental $1 trillion compensation package faces a critical shareholder vote on November 6. BofA analyst Federico Merendi flags rejection as a material risk, potentially triggering stock volatility if Musk reduces involvement. Chair Robyn Denholm’s investor letter underscores market perception of Musk as indispensable to Tesla’s $8.5 trillion valuation targets and robotics ambitions.
The package ties Musk’s rewards to decade-long milestones, including robotaxi deployment and humanoid robot sales. Denholm’s framing positions retention as existential—echoing Tesla’s cult-of-personality valuation premium. Market reaction may hinge on whether investors view the package as incentivizing growth or excessive dilution.
