Elon Musk used Tesla’s earnings call to argue that the company’s continued innovation depends on approval of his trillion-dollar compensation package and the voting control it provides. The bold assertion came ahead of the critical November 6 shareholder vote in Austin.
Tesla’s quarterly financial review had covered the company’s progress in artificial intelligence, robotaxi technology, and humanoid robotics before Musk’s unscheduled intervention. His decision to frame compensation as essential for innovation demonstrated his conviction that leadership stability is crucial for Tesla’s technological ambitions.
Musk explained his need for sufficient voting influence to protect Tesla’s strategic vision while remaining subject to shareholder oversight. He presented the compensation issue as fundamental to continuing ambitious projects in robotics and AI without facing removal based on recommendations from proxy advisors he characterized as unqualified.
ISS and Glass Lewis bore the brunt of Musk’s criticism, with the CEO suggesting their recommendations reflect inadequate understanding of Tesla’s business model and innovation agenda. His passionate denunciation included references to the discomfort of developing advanced robotics while facing potential ouster based on their advice.
The earnings call concluded with CFO Vaibhav Taneja defending the compensation structure’s alignment with shareholder value creation. Taneja emphasized that the board committee designed the package to ensure Musk receives payment only when investors see substantial returns, making repeated direct appeals for favorable votes.
