Cathie Wood, the founder of ARK Invest, has expressed her unwavering confidence in the potential passage of Elon Musk’s 2025 CEO Performance Award. Her support echoes the sentiments of many investors who view Musk’s leadership as pivotal to the disruptive success of Tesla and other ventures he leads. With a unique ability to attract top talent and inspire innovation, Musk’s leadership is seen as a critical asset for the future of Tesla.
Support for Musk’s visionary leadership
Elon Musk’s proposed 2025 CEO Performance Award has sparked a variety of reactions from the investment community. While some proxy advisory firms, including Glass Lewis and Institutional Shareholder Services (ISS), have advised shareholders to vote against the pay package, others, like the State Board of Administration of Florida, are backing it.
Cathie Wood, a prominent figure in the investment landscape, remains optimistic about the outcome. She has articulated that a favorable vote for Musk’s pay plan could significantly benefit Tesla. Wood emphasizes that Musk is not only one of the most productive individuals globally, but he also attracts exceptional talent dedicated to tackling some of the world’s most intricate challenges.
In her own words, she stated, “This is a win-win for all of us if Elon succeeds this time.” Musk acknowledged her support with a straightforward “Thanks Cathie!” on social media platform X, showcasing the camaraderie between them.
ARK Invest: A steadfast supporter of Tesla
ARK Invest has positioned itself as one of Tesla’s most loyal advocates, with an estimated $1 billion stake in TSLA, making it the firm’s largest holding. Wood has previously suggested that the approval of Musk’s pay package could lead to what she describes as “super-exponential growth” for the automaker.
This anticipated growth is largely attributed to the introduction of new products, such as the Cybercab and the humanoid robot Optimus, which aim to diversify Tesla’s offerings. Wood elucidated the importance of convergence among multiple platforms, stating:
- Robotics
- Energy storage
- Artificial Intelligence
- Humanoid robots
She believes that these innovations are not just incremental improvements but rather fundamental shifts that will redefine industry standards.
Michael Dell emphasizes performance-driven compensation
Michael Dell, the CEO of Dell Technologies, has also weighed in on Musk’s controversial pay package, framing it from a results-oriented perspective. Dell highlights that Musk’s financial rewards are contingent upon delivering extraordinary value to shareholders, meaning he will not receive compensation unless he meets ambitious targets.
In a recent post on X, Dell stated, “Vote FOR Elon Musk. The award is only achieved IF he hits exceptionally ambitious market-cap and operational milestones—if he falls short, he gets nothing.” This statement highlights the inherent risk-reward balance, suggesting that if Musk succeeds, shareholders stand to gain significantly.
Breaking down Musk’s ambitious pay package
Elon Musk’s 2025 CEO Performance Award is ambitious in its scope, requiring Tesla’s market capitalization to grow from approximately $1.1 trillion to an astounding $8.5 trillion over a decade. This increase would establish Tesla as the most valuable company in history.
Moreover, significant operational milestones are also tied to this compensation package:
- Increase operating profit from $17 billion to $400 billion annually
- Achieve 20 million cumulative vehicle deliveries
- Secure 10 million Full Self-Driving subscriptions
- Deploy 1 million Tesla Bots
- Launch 1 million operating Robotaxis
Despite these ambitious targets, proxy advisors like Glass Lewis and ISS have recommended against the proposal. In contrast, supporters like Cathie Wood have rallied behind Musk, asserting that his relentless drive and vision are integral to Tesla’s ongoing success.
Insights from Tesla’s VP for AI software
In a recent statement, Ashok Elluswamy, Tesla’s Director of Autopilot Software and VP of AI Software, provided a compelling argument in favor of Musk’s 2025 performance award. He emphasized that Tesla is at a pivotal moment in its evolution, transitioning from a leader in electric vehicles to a frontrunner in robotics powered by real-world AI.
Elluswamy posited that Musk’s leadership is more crucial now than ever. He stated, “Creating large-scale, useful robots requires expertise across engineering design, manufacturing, real-world AI software, chips for AI, and more. Elon is, quite likely, the only person on Earth with deep skills and the right instincts across all these domains.”
A concerted effort to support Musk’s performance award
Tesla executives, including Board Chair Robyn Denholm, have been actively encouraging shareholders to support Musk’s 2025 performance award during the lead-up to the upcoming Annual Shareholders Meeting. This meeting is scheduled for November 6, 2025, at Giga Texas, and it is expected to be a critical juncture for Tesla’s future.
The executives have articulated that the proposals tied to Musk’s compensation are essential for achieving the ambitious objectives outlined in his Master Plan Part IV. The outcome of this vote could have far-reaching implications for the company in the coming years.
California pension fund’s opposition
Amid the supportive voices, the California Public Employees’ Retirement System (Calpers), one of the largest pension funds in the United States, has declared its intention to vote against Musk’s performance award. With approximately 5 million shares of Tesla, Calpers’ stance carries weight among institutional investors.
In a statement reported by Bloomberg News, a Calpers spokesperson criticized the magnitude of Musk’s proposed deal, stating, “The CEO pay package proposed by Tesla is larger than pay packages for CEOs in comparable companies by many orders of magnitude. It would also further concentrate power in a single shareholder.”
This marks not the first occasion where Calpers has opposed Musk’s compensation plans; the fund previously rejected a $56 billion package and criticized Musk’s 2018 performance-based plan for its ambitious nature.
Understanding Musk’s 2025 CEO Performance Award
Elon Musk’s 2025 performance award is not just a financial incentive; it’s a strategic move aimed at ensuring long-term control and influence over Tesla. If Musk successfully meets the aggressive operational and financial targets laid out in the plan, he stands to become a trillionaire. However, he has made it clear that the focus of the award is not on wealth accumulation but rather on maintaining his controlling stake in Tesla.
Musk expressed his concerns regarding future governance, stating, “If I can just get kicked out in the future by activist shareholder advisory firms who don’t even own Tesla shares themselves, I’m not comfortable with that future.” This sentiment underscores the complex interplay between shareholder interests, executive compensation, and the direction of the company.
As the date of the vote approaches, the dynamics between supporters and detractors of Musk’s ambitious pay package are likely to intensify, shaping not only the future of Tesla but also the broader conversation about corporate governance and executive compensation in the tech industry.