Tesla shareholders have affirmed their support for Elon Musk, despite his controversial public persona and fluctuating relationship with former President Donald Trump. They recently approved a $1 trillion compensation plan that could position Musk to become the world’s first trillionaire, contingent upon achieving ambitious company goals. These include increasing Tesla’s market value from approximately $1.4 trillion to $8.5 trillion. Currently, Musk holds a stake of about 12.5% in Tesla, valued at approximately $461 billion.
Dan Ives, a managing director at Wedbush, noted the interconnectedness of Musk and Tesla, despite ongoing concerns about the impact of Musk’s political actions on the brand. Critics suggest that Musk’s public behavior, including his political affiliations and controversial actions relating to social media, may have harmed the company’s reputation, particularly among left-leaning consumers.
Amidst these challenges, Tesla has faced sales declines linked to Musk’s associations with Trump and shifts in his public image since acquiring Twitter (now X) in 2022. Reports of Musk’s personal behavior, including alleged drug use and his political endorsements, have further complicated perceptions of the brand. Yet, despite these issues, Tesla shares have increased significantly since Musk distanced himself from the Trump administration.
The rise in Tesla’s stock can also be attributed to a cultural tendency among U.S. investors to support bold entrepreneurs like Musk. The recent approval of additional targets in Musk’s compensation plan further emphasizes investor confidence in his leadership, with goals including significant production milestones in electric vehicles and advancements in autonomous technology.
While some analysts express doubts about the long-term prospects of Tesla’s core business and Musk’s ambitious plans, shareholders remain optimistic, suggesting a willingness to invest in Musk’s vision for the future of the company.
Source: https://www.theguardian.com/technology/2025/nov/07/tesla-why-us-investors-are-happy-to-pay-elon-musk-1-trillion