If passed, this would become the largest pay package for a CEO in corporate America.

Glass Lewis cited several reasons for their recommendation, including the "excessive size" of the pay deal and its dilutive effect upon exercise, as well as concerns about the concentration of ownership. The advisory firm also pointed out Musk's involvement in a "slate of extraordinarily time-consuming projects," which have expanded with his high-profile purchase of Twitter, now known as X.

The pay package, proposed by Tesla's board of directors, has faced criticism due to the board's close ties with the billionaire. The package does not include a salary or cash bonus but instead offers rewards based on Tesla's market value reaching up to $650 billion over the next 10 years. Currently, the company is valued at approximately $571.6 billion according to LSEG data.

It's worth noting that in January, Judge Kathaleen McCormick of Delaware's Court of Chancery nullified the original pay package. In response, Musk sought to move Tesla's state of incorporation from Delaware to Texas. However, Glass Lewis has criticized this proposed move, highlighting "uncertain benefits and additional risk" it may pose to the shareholders.

Despite the advisory firm's recommendation, Tesla has urged its shareholders to reaffirm their approval of the compensation package. In an interview with the Financial Times earlier this month, Tesla's board chair, Robyn Denholm, defended the pay package, stating that Musk deserved it due to the company's achievement of ambitious revenue targets and stock price growth.

Elon Musk joined Tesla as CEO in 2008, and his leadership has been credited with significant improvements in the company's financial performance. According to an online campaign website called Vote Tesla, the company has seen a remarkable turnaround from a $2.2 billion loss in 2018 to a $15 billion profit in recent years. Additionally, Tesla's vehicle production has increased sevenfold.

In the same advisory report, Glass Lewis also recommended shareholders vote against the reelection of board member Kimbal Musk, Elon Musk's brother. However, the reelection of former 21st Century Fox CEO James Murdoch was recommended.

As the upcoming shareholder vote approaches, all eyes will be on Tesla and its investors to see how they respond to Glass Lewis' recommendation and the historic significance of Elon Musk's proposed pay package.