Tesla has issued a sharp response to major proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis, after both recommended that shareholders vote against CEO Elon Musk’s proposed $1 trillion compensation package and a shareholder proposal to invest in his artificial intelligence venture, xAI.
In a lengthy post shared on X, Tesla said, “ISS and Glass Lewis have recommended against Tesla’s proposals time and time again since the 2018 CEO Performance Award was introduced. It’s a good thing our shareholders ignored those recommendations otherwise they may have missed out on our market capitalization soaring by 20x from March 2018 to August 2025.”
The automaker went on to call Glass Lewis’s latest stance “another misguided recommendation,” arguing that it “disregards the fundamental purpose of public companies and who they serve – the shareholders.” Tesla also added, “These firms do not own Tesla – you do.”
Tesla accused both firms of applying “one-size-fits-all checklists” that “undermine shareholders’ interests,” pointing out that state and federal officials are already scrutinizing ISS and Glass Lewis over whether their recommendations truly align with the financial interests of shareholders.
“Shareholders have spoken twice on Elon’s 2018 CEO Performance Award,” Tesla said, adding that both firms’ latest guidance “attempt[s] to override the mandate our shareholders delivered to Elon and ignore the staggering financial results delivered under Elon’s leadership.” The post ended with a rallying call: “Vote yes to robots, not robotic voting. Vote with Tesla on ALL proposals.”
This latest clash follows Tesla’s announcement last month of an unprecedented $1 trillion CEO Performance Award for Musk, which would pay out in full only if he grows the company’s market capitalization to $8.5 trillion and meets a series of operational milestones. The plan builds on Musk’s 2018 award — worth over $50 billion today — which shareholders twice approved before a Delaware court struck it down.
The new plan will be voted on at Tesla’s annual shareholder meeting on November 6, alongside other proposals, including an investment in Musk’s AI startup xAI. Tesla has been heavily promoting the upcoming vote through social media and comprehensive marketing campaigns, urging investors to vote their shares and support the board’s recommendations across all agenda items.
