Elon Musk Blames Proxy Advisors for Tesla Governance Uncertainty

During Tesla’s earnings call, Elon Musk blamed proxy advisory firms for creating governance uncertainty around his trillion-dollar compensation package. The direct blame came as shareholders prepare for the critical November 6 vote that will resolve the uncertainty.
Tesla’s quarterly financial presentation had covered advances in artificial intelligence, robotaxi technology, and humanoid robotics before Musk’s dramatic intervention. His decision to blame proxy advisors for uncertainty demonstrated his frustration with what he perceives as unnecessary external interference in Tesla’s governance decisions.
Musk explained his need for sufficient voting influence to protect Tesla’s strategic vision while remaining accountable to investors. 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 bore the brunt of Musk’s criticism, with the CEO suggesting their recommendations create governance problems rather than solving them. His colorful language included references to not feeling comfortable building a “robot army” while facing potential removal based on their “asinine recommendations.”
The earnings call concluded with CFO Vaibhav Taneja defending the compensation structure’s alignment with shareholder interests. 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.