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Investors in the electric car maker gathered on Thursday to decide on a massive compensation package for the company's leader estimated at around $1 trillion. Upon approval, this deal would signal shareholder trust that the tech magnate can guide the vehicle manufacturer into an age defined by artificial intelligence and automation. If rejected, Tesla could potentially face the departure of a key figure who historically built the brand synonymous with electric vehicles.

Historic Goals and Company Valuation

If the CEO meets the ambitious targets outlined in the pay package presented at Tesla's annual meeting, he could be crowned the first-ever trillionaire. For this to happen, he must steer Tesla to a monumental $8.5 trillion in market capitalization, which is 800% of its existing market cap. Additionally, he will be required to launch countless driverless automobiles and advanced androids, while upholding the company's bottom line in the massive revenue figures in the upcoming decade.

Reward System

The main goals of the remuneration structure, divided into 12 tranches, delineate a path for Tesla to attain its massive market capitalization. Should targets be met, Musk would be in a position to realize gains on an additional 12% of the firm's equity. To qualify, he must maintain involvement with the firm for no less than 7.5 years. He will also help develop a long-term succession plan for the business he has led for in excess of 20 years. The stock options offered by the updated remuneration deal, in addition to shares promised in his previous compensation plan, would leave Musk with a quarter stake of Tesla's equity. By the start of November, Tesla stock was trading near its yearly maximum, at around $450 each share.

Ambitious Targets

During a ten years, Musk will be tasked to manufacture 20 million EVs to consumers, market 10 million live FSD memberships, produce and launch 1 million advanced androids, and deploy 1 million self-driving cabs in paid operations.

Musk will furthermore be required to increase the company to $400 billion in real profits for four straight quarters. Tesla's real profits for the third quarter of 2025 were $4.2 billion, a 9% decrease from the previous year.

By November, Musk's fortune was pegged at $460 billion, the highest in the planet, according to wealth indexes.

Reviving a Invalidated Plan

Shareholders are additionally reviewing a arrangement that would compensate Musk after his 2018 compensation plan was invalidated by a legal authority in Delaware. The compensation package, valued at around $56 billion, was disputed by a individual investor who prevailed in court. The Delaware court of chancery rejected Musk's compensation plan on two occasions. If shareholders approve the plan in Thursday's vote, Musk is set to be granted the huge sum irrespective of whether Tesla and Musk succeed in appealing of the case.

After Musk's earlier remuneration deal was first rescinded, he transferred Tesla's business registration from Delaware to Texas. He followed suit with his aerospace company and other companies' headquarters. In last year, per Texas statutes, shareholders again approved the pay package.

But Delaware's often referred to as "judicial body" once again denied one of the biggest CEO compensation packages in recent times. After that unfavorable ruling, Musk used online platforms to express dissatisfaction with the jurisdiction and its "activist chief judge", possibly igniting a series of corporate exits that Delaware officials have attempted to staunch with regulatory measures.

In reviewing whether Musk had improper sway in being awarded that previous compensation plan, a respected legal scholar commented that the judge noted that other "superstar CEOs" like the Meta chief and the e-commerce pioneer were not awarded this type of incentive-based contracts.