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Investors in the electric car maker assembled on Thursday to decide on a massive compensation package for CEO Elon Musk worth approximately nearly $1 trillion. Upon approval, this deal would demonstrate market faith that the billionaire can lead the car company into an period shaped by artificial intelligence and robotics. If rejected, Tesla could potentially face the departure of a key figure who once made the company name synonymous with EVs.

Historic Targets and Market Capitalization

Upon reaching the formidable objectives specified in the pay package presented at Tesla's annual meeting, he could become the first-ever person with a trillion-dollar net worth. To reach this goal, he must lead Tesla to a monumental $8.5 trillion in market capitalization, which is 800% of its existing market cap. Moreover, he will be required to roll out millions self-driving cars and bipedal machines, while sustaining the company's bottom line in the hundreds of billions of dollars in the upcoming decade.

Compensation Structure

The main goals of the remuneration structure, divided into twelve stages, delineate a roadmap for Tesla to reach its colossal market capitalization. Upon achievement, Musk would be eligible to benefit from an additional 12% of the corporation's shares. For this to occur, he must stay committed with the corporation for no less than 7.5 years. Additionally, he must help develop a future leadership strategy for the organization he has managed for in excess of 20 years. The share grants offered by the new compensation plan, in addition to shares promised in his 2018 package, would grant Musk with 25% ownership of Tesla's stock. By the start of November, Tesla shares were valued near its yearly maximum, at around $450 per stock.

Lofty Goals

Throughout a ten-year period, Musk will be obligated to deliver 20 million zero-emission cars to consumers, sell 10 million active full self-driving subscriptions, create and distribute 1 million bipedal machines, and introduce 1 million self-driving cabs in commercial service.

Musk will also be obligated to increase the firm to $400 billion in tangible revenue for four straight quarters. Tesla's actual earnings for the third quarter of 2025 were $4.2 billion, a 9% decrease from the previous year.

As of November, Musk's net worth was estimated at $460 billion, the highest in the world, according to wealth indexes.

Reviving a Invalidated Deal

Shareholders are furthermore reviewing a plan that would compensate Musk after his earlier remuneration deal was voided by a court in Delaware. The remuneration deal, worth an estimated $56 billion, was disputed by a sole shareholder who won his case. The state court dismissed Musk's compensation plan on multiple instances. If shareholders approve the arrangement in the Thursday ballot, Musk is expected to be awarded the huge sum regardless of if Tesla and Musk win an appeal of the case.

Following Musk's earlier remuneration deal was originally overturned, he moved Tesla's legal headquarters out of Delaware and into Texas. He did the same with SpaceX and additional corporate bases. In the previous year, under Texas law, shareholders again passed the compensation plan.

But Delaware's known as "equity court" again rejected one of the largest CEO compensation packages in modern history. In the wake of that adverse judgment, Musk posted on his accounts to voice displeasure with the state and its "influential presiding justice", arguably igniting a series of corporate exits that Delaware lawmakers have tried to stop with new laws.

In reviewing whether Musk had improper sway in being awarded that 2018 pay package, a respected academic expert remarked that the judicial authority noted that other "celebrity leaders" like Meta's Mark Zuckerberg and Amazon's Jeff Bezos were not granted this type of incentive-based contracts.