During Tesla’s earnings call, Elon Musk questioned whether proxy advisory firms understand the company’s business model while defending his trillion-dollar compensation package. The direct challenge came ahead of the November 6 shareholder vote that will determine the package’s fate.
Tesla’s quarterly financial review had addressed the company’s advances in artificial intelligence, robotaxi technology, and humanoid robotics before Musk’s intervention. His decision to question proxy advisors’ competence demonstrated his frustration with what he perceives as uninformed external interference in Tesla’s governance.
Musk explained his need for adequate voting influence to protect Tesla’s strategic vision while remaining subject to shareholder accountability. He framed the compensation issue as essential for continuing ambitious technology initiatives without facing removal based on recommendations from advisors he characterized as lacking proper understanding.
ISS and Glass Lewis received Musk’s sharpest criticism, with the CEO suggesting they fundamentally misunderstand Tesla’s business model and technological objectives. His passionate denunciation included specific references to not feeling comfortable building advanced robotics while facing potential removal based on their advice.
The earnings call concluded with CFO Vaibhav Taneja defending the compensation structure’s shareholder alignment. Taneja emphasized that the board committee designed the package to ensure Musk benefits only when investors achieve substantial returns, making multiple direct appeals for favorable votes.