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Investors in the electric car maker convened on Thursday to vote on a enormous compensation package for CEO Elon Musk estimated at close to $1 trillion. Upon approval, this package would signal market faith that the tech magnate can steer the automaker into an period shaped by artificial intelligence and robotics. If denied, Tesla could confront the exit of a pioneering CEO who historically built the corporation equivalent with electric vehicles.

Record-Breaking Goals and Market Capitalization

If the CEO meets the ambitious targets detailed in the remuneration deal revealed at Tesla's corporate assembly, he could emerge as the world's first person with a trillion-dollar net worth. To reach this goal, he must steer Tesla to a astronomical $8.5 trillion in market capitalization, which is 800% of its current valuation. Furthermore, he will be required to deploy countless autonomous vehicles and advanced androids, while upholding the financial performance in the massive revenue figures throughout the coming ten years.

Reward System

The main goals of the pay package, divided into 12 tranches, outline a trajectory for Tesla to achieve its massive worth. Upon achievement, Musk would be eligible to benefit from an further 12% of the corporation's shares. To qualify, he must stay committed with the firm for a minimum of 7.5 years. He will also help develop a long-term succession plan for the business he has led for more than 20 years. The share grants awarded by the new compensation plan, in addition to shares assured in his previous compensation plan, would result in Musk with 25 percent equity of Tesla's stock. In early November, Tesla equity was priced near its yearly maximum, at approximately $450 each share.

Formidable Objectives

Throughout a ten years, Musk will be required to deliver 20 million EVs to consumers, market 10 million live FSD memberships, create and distribute 1 million bipedal machines, and introduce 1 million robotaxis in paid operations.

Musk will furthermore be obligated to bring the company to $400 billion in real profits for four straight quarters. Tesla's actual earnings for the Q3 2025 were $4.2 billion, a 9% decrease from the same period last year.

In November, Musk's fortune was valued at $460 billion, the highest in the world, based on market tracking.

Restoring a Rescinded Plan

Shareholders are furthermore reviewing a proposal that would reward Musk after his previous pay package was voided by a court in Delaware. The remuneration deal, worth an estimated $56 billion, was disputed by a sole shareholder who succeeded legally. The state court denied Musk's remuneration deal on two occasions. Upon stockholder approval the arrangement in Thursday's vote, Musk is likely to be granted the massive amount regardless of if Tesla and Musk succeed in appealing of the case.

Subsequent to Musk's previous compensation plan was first rescinded, he relocated Tesla's business registration out of Delaware and into Texas. He followed suit with SpaceX and other companies' headquarters. In 2024, according to Texas regulations, shareholders once again passed the pay package.

But Delaware's so-called "equity court" once again denied one of the biggest CEO payouts in contemporary business. After that adverse judgment, Musk took to social media to express dissatisfaction with the region and its "prominent judicial figure", possibly sparking a series of corporate exits that Delaware lawmakers have attempted to staunch with regulatory measures.

In reviewing whether Musk had undue influence in being granted that previous compensation plan, a respected academic expert observed that the judicial authority noted that other "high-profile executives" like Facebook's founder and the e-commerce pioneer were not awarded this kind of performance-linked deals.