Elon Musk issues a “trillion-dollar ultimatum” to Tesla shareholders

(Dan Tri) - Tesla's profits plummeted, but Musk turned the third-quarter meeting into a campaign for a $1 trillion bonus package - with the message: "Either me or no one."

Wall Street was bracing for a dismal quarter for Tesla. And as expected, the electric carmaker’s profits fell 37%, wiping out 40% of its operating profit as a price war eroded margins, operating costs rose 50%, and new tariffs cost the company another $400 million.

Tesla shares slid more than 5.7% before the open.

But for Elon Musk, those numbers are just a small detail. The richest man on the planet (currently worth an estimated $455 billion) quickly brushed aside any questions about falling profits. He dominated the stage, turning the earnings call into a power struggle for the only thing he really cared about: a $1 trillion compensation package.

With third-quarter net profit down 37% and consumer confidence at rock bottom, Tesla shareholders are facing a trillion-dollar question about Elon Musk's leadership and self-driving car vision (Photo: Getty).

Ultimatum: Musk or no one

According to plan, on November 6, Tesla shareholders will vote on Musk's new bonus package - a deal that analysts consider "unprecedented in American corporate history".

If Tesla hits ambitious financial and technological targets, particularly in AI and the Optimus humanoid robot, Musk will be awarded a huge amount of stock, increasing his holdings to nearly 29%. The estimated conversion value is up to $1,000 billion.

Musk explained that he needed more control to realize Tesla’s AI vision. “I want to have a lot of influence, but not so much that I can’t be fired if I go crazy,” he said, half-jokingly.

But behind that was a clear ultimatum. Musk insisted that only he had the ability to transform Tesla from an electric car company into a technology empire where robotics, artificial intelligence and self-driving software played a central role.

“If I build a giant robot army here, can they kick me out of the company?” Musk asked, his tone half sarcastic, half warning.

The message is clear: Tesla’s AI future is “hostage” in Musk’s hands. Without more power, that “robot army” may never exist.

Attacking “corporate terrorists”

Musk's recklessness peaked when he attacked two of the world's most influential voting rights consulting organizations, ISS and Glass Lewis, for recommending shareholders vote against his compensation package.

ISS expressed “serious concerns” about the size and structure of the bonus, while Glass Lewis warned the plan could dilute existing shareholders.

Musk's response? He called them "corporate terrorists" right in the meeting.

This statement surprised investors, but it reflects Musk's style - always ready to confront any force that stands in his way.

On the X platform, he also challenged: “Tesla is now worth more than all other car companies combined. So among them, who is more worthy to run Tesla than me? No one.”

For Musk, this is no longer a matter of money, but a battle for absolute control.

Tesla shareholders' dilemma

While Musk envisions Tesla becoming a robotics empire, third-quarter financial figures paint a worrying picture. Profits fell 37%, as Tesla repeatedly slashed prices to compete. Revenue rose 12% to $28.1 billion, largely due to a wave of purchases before federal tax incentives expired—a short-term, unsustainable boost.

Operating costs rose 50% to $3.4 billion, while new tariffs added another $400 million. Revenue from carbon credits fell sharply as the Trump administration loosened emissions regulations.

Tesla’s core profit engine is under pressure. The company’s stock is still up 9% year to date, but that’s well behind the S&P 500’s 14% gain—a sign that investors are losing faith in the Elon Musk magic.

But in a clever move, Musk turned the poor earnings call into a referendum on himself.

Shareholders are now caught in a dilemma.

On the one hand, they could choose to be rational—seeing Tesla as a business struggling with rising costs and falling profits; following the advice of ISS and Glass Lewis to reject a compensation package that was deemed “irrational” and “lacking in management discipline.”

On the other hand, they can choose to believe in the unstable genius Elon Musk. Believing that only he has the ability to take Tesla beyond the boundaries of the auto industry, into the era of AI and robotics.

Rejecting this bonus package means Musk risks getting bored with Tesla, shifting his focus to X or SpaceX, and the "robot army" will remain a dream that has yet to take shape.

Elon Musk is asking for $1 trillion not for what he has done, but for what he promises to do.

And he said it bluntly: Without him, Tesla would never have reached that promise.

Source: https://dantri.com.vn/kinh-doanh/elon-musk-tung-toi-hau-thu-nghin-ty-usd-voi-co-dong-tesla-20251024110929492.htm