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Tesla's Big Payday: A Clash of Opinions

USATuesday, November 4, 2025
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Tesla's CEO, Elon Musk, is once again making headlines, but this time the focus is on his proposed pay package—a topic that has sparked debate among investors.

The Debate

  • Norway's Investment Fund opposes the pay package, citing concerns over:
  • The excessive amount of money involved.
  • The potential dilution of Tesla's value.
  • The company's over-reliance on Musk.

  • Baron Capital Management, however, supports the package, arguing that:
  • Musk is the driving force behind Tesla's success.
  • Without him, Tesla might not exist.

The Details

  • Musk, Tesla's biggest shareholder, could receive shares worth up to 12% of the company if Tesla meets key targets, including:
  • High vehicle production.
  • A strong stock price.
  • Significant profits.

Beyond the Pay Package

Tesla's annual meeting will also vote on over a dozen proposals, but the pay package remains the most contentious issue.

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