Cathie Wood, CEO of Ark Invest, is once again standing firmly in Elon Musk’s corner. In a post on X Sunday night, the ARK Invest founder said she expects Musk’s new Tesla pay plan to pass “decisively,” despite strong opposition from proxy firms and institutional investors.
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“When shareholders first voted on Elon Musk’s 2018 pay package, Tesla was not in any index, and the pay package won decisively,” Wood wrote. “Now Tesla is 2.4% of the S&P 500, not enough for index funds to swing the vote, and I believe that Elon’s new package will win decisively.”
Her prediction comes as Tesla (TSLA) prepares for a November 6 shareholder vote on the most ambitious compensation deal in corporate history. The proposal would give Musk up to $1 trillion in stock if Tesla achieves an $8.5 trillion valuation and meets 12 operational milestones. These include selling 12 million vehicles, producing one million humanoid robots, and launching one million robotaxis by 2035.
Proxy Firms Push Back, but the Board Warns of Consequences
Institutional Shareholder Services and other proxy advisors have urged investors to vote against the plan, calling it oversized and poorly constrained. They argue the structure lacks clear limits and could concentrate too much control in Musk’s hands.
Tesla’s board disagrees. In filings, it warned that rejecting the package could carry real risk, saying Musk might scale back his involvement or even walk away from the company. This message landed loudly with investors who view Musk as Tesla’s creative engine. Moreover, the company emphasized that Musk only gets paid if the stock price climbs significantly. This aligns his interests directly with shareholders.
Wood Turns Up the Fire on Proxy Power
Rather than defending Musk’s pay specifically, Wood turned her attention to the system shaping the debate. “Isn’t it sad, if not damning, that institutional shareholders rely on proxy firms to tell them how they should vote?” she wrote in a follow-up post. “Index funds do no fundamental research, yet dominate institutional voting. Index-based investing is a form of socialism. Our investment system is broken.”
Musk quickly replied, “Absolutely.” His endorsement reinforced how closely aligned the two have become in defending Tesla’s unconventional governance style. Moreover, Wood’s comments echoed her long-standing view that active, research-driven investing is essential to capitalism and that passive funds have made markets too mechanical.
Retail Investors Rally Behind Musk
Tesla’s retail investor base remains one of the most vocal and loyal communities in the market. Many have framed Musk’s compensation as a reward for bold innovation, not excess. They point to the company’s transformation from niche EV maker to global leader in AI, energy, and robotics.
Wood tapped into that sentiment directly. “Retail investors are likely to dominate the vote once again,” she wrote. “America!” Her confidence recalls the same retail enthusiasm that helped approve Musk’s 2018 and 2012 pay packages, even after court challenges and institutional pushback. Moreover, the math may back her up. With Tesla representing just 2.4% of the S&P 500, index funds alone cannot decide the outcome.
The November 6 vote will test Musk’s paycheck, but it will also measure investor confidence in his leadership.
Is Tesla Stock a Buy, Hold, or Sell?
Currently, Wall Street has a Hold consensus rating on Tesla stock based on 16 Buys, 13 Holds, and 10 Sell recommendations. The average 12-month TSLA stock price target of $366.35 implies a 16.6% downside from the current level.
