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Investors in the electric car maker gathered this Thursday to vote on a substantial compensation package for CEO Elon Musk worth approximately nearly $1 trillion. Upon approval, this plan would showcase shareholder trust that the tech magnate can guide the car company into an era dominated by artificial intelligence and advanced machinery. Should it fail, Tesla could potentially face the departure of a pioneering CEO who previously established the company name interchangeable with EVs.

Record-Breaking Targets and Market Capitalization

If the CEO meets the ambitious objectives outlined in the pay package revealed at Tesla's annual meeting, he could emerge as the first-ever person with a trillion-dollar net worth. To reach this goal, he must lead Tesla to a astronomical $8.5 trillion in market capitalization, which is an eightfold increase its current valuation. Furthermore, he will be obligated to roll out countless driverless automobiles and advanced androids, while sustaining the company's bottom line in the hundreds of billions of dollars over the next decade.

Payment Breakdown

The primary objectives of the remuneration structure, split into twelve stages, delineate a trajectory for Tesla to attain its massive market capitalization. Upon achievement, Musk would be able to realize gains on an extra 12% of the company's stock. For this to occur, he must remain vested with the firm for at least 7.5 years. Furthermore, he is required to contribute to forming a future leadership strategy for the enterprise he has managed for more than 20 years. The equity incentives offered by the new compensation plan, alongside shares promised in his earlier deal, would result in Musk with a quarter stake of Tesla's shares. As of early November, Tesla stock was trading near its 52-week high, at roughly $450 per stock.

Lofty Goals

Over the course of a decade, Musk will be obligated to manufacture 20 million EVs to customers, sell 10 million operational autonomous driving plans, create and distribute 1 million humanoid robots, and launch 1 million self-driving cabs in commercial service.

Musk will also be tasked to elevate the company to $400 billion in tangible revenue for four consecutive quarters. Tesla's tangible revenue for the third quarter of 2025 were $4.2 billion, down 9% from the year before.

In November, Musk's fortune was estimated at $460 billion, the leading in the world, according to wealth indexes.

Restoring a Invalidated Deal

Stockholders are additionally reviewing a proposal that would reward Musk after his earlier remuneration deal was overturned by a court in Delaware. The compensation package, worth an estimated $56 billion, was challenged by a sole shareholder who won his case. The Delaware judicial system rejected Musk's compensation plan on two occasions. If shareholders approve the arrangement in Thursday's vote, Musk is set to be paid the huge sum regardless of if Tesla and Musk overturn the ruling of the case.

Subsequent to Musk's previous compensation plan was first rescinded, he moved Tesla's corporate home from Delaware to Texas. He followed suit with his aerospace company and other business entities. In 2024, per Texas statutes, shareholders again approved the compensation plan.

But Delaware's so-called "equity court" for a second time rejected one of the most substantial CEO compensation packages in contemporary business. Following that adverse judgment, Musk used online platforms to express dissatisfaction with the region and its "prominent judicial figure", perhaps igniting a wave of business departures that Delaware officials have sought to curb with legislation.

In considering whether Musk had improper sway in being given that previous compensation plan, a respected law professor observed that the judicial authority recognized that other "high-profile executives" like Meta's Mark Zuckerberg and the e-commerce pioneer were not awarded this type of incentive-based contracts.