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Tesla’s board of directors has issued a stark warning to shareholders: approve Elon Musk’s substantial compensation package or risk jeopardizing the company’s future success. The board argues that Musk’s continued leadership is indispensable for Tesla to maintain its position as a revolutionary force across mobility, energy, and even labor, particularly as the company develops advanced technologies like Full Self-Driving (FSD) and the Optimus robot.

The plea comes ahead of a crucial shareholder vote scheduled for November 6th, which will also address the proposed relocation of Tesla’s incorporation to Texas, a move prompted by a Delaware court’s rejection of a previous compensation plan. While Tesla leadership emphasizes the vital role Musk plays, proxy advisory firms have recommended against approving the package, deeming it excessive and affording Musk too much influence.

Adding to the complexity, Tesla faces challenges including an aging product lineup, increasing competition within the electric vehicle market, and the expiration of valuable tax credits. The outcome of the vote will significantly impact Tesla’s trajectory, potentially shaping its ability to navigate these hurdles and achieve its long-term goals.