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Investors in the electric car maker convened on Thursday to decide on a massive compensation package for CEO Elon Musk estimated at nearly $1 trillion. Should it pass, this package would signal shareholder trust that the entrepreneur can lead the car company into an era defined by artificial intelligence and advanced machinery. If rejected, Tesla could confront the loss of a key figure who once made the brand synonymous with zero-emission cars.

Record-Breaking Targets and Company Valuation

Upon reaching the lofty milestones outlined in the compensation plan presented at Tesla's annual meeting, he could become the world's first person with a trillion-dollar net worth. To reach this goal, he must guide Tesla to a monumental $8.5 trillion in market value, which is eight times its current valuation. Additionally, he will be tasked to launch countless self-driving cars and advanced androids, while upholding the corporate profits in the massive revenue figures in the upcoming decade.

Payment Breakdown

The key aims of the pay package, divided into twelve stages, delineate a trajectory for Tesla to reach its colossal market capitalization. If successful, Musk would be in a position to realize gains on an further 12% of the corporation's shares. To be eligible, he must stay committed with the company for at least 7.5 years. Furthermore, he is required to assist in creating a long-term succession plan for the organization he has led for over 20 years. The stock options awarded by the updated remuneration deal, combined with shares assured in his earlier deal, would result in Musk with 25% ownership of Tesla's equity. As of early November, Tesla equity was priced approaching its yearly maximum, at roughly $450 per stock.

Ambitious Targets

During a ten-year period, Musk will be tasked to manufacture 20 million electric vehicles to buyers, market 10 million live FSD memberships, create and distribute 1 million bipedal machines, and introduce 1 million self-driving cabs in paid operations.

Musk will furthermore be tasked to bring the corporation 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 previous year.

As of November, Musk's net worth was valued at $460 billion, the top in the globe, according to market tracking.

Reinstating a Rescinded Deal

Stockholders are additionally considering a plan that would compensate Musk after his previous pay package was overturned by a legal authority in Delaware. The compensation package, estimated to be $56 billion, was challenged by a single stockholder who won his case. The Delaware court of chancery denied Musk's remuneration deal twice. Upon stockholder approval the proposal in the Thursday ballot, Musk is likely to be awarded the substantial payout regardless of if Tesla and Musk win an appeal of the legal matter.

Following Musk's previous compensation plan was originally overturned, he moved Tesla's corporate home out of Delaware and into Texas. He followed suit with SpaceX and other companies' headquarters. In last year, per Texas statutes, shareholders for a second time voted to approve the compensation plan.

But Delaware's so-called "court of equity" again denied one of the biggest CEO compensation packages in recent times. After that negative decision, Musk took to social media to show frustration with the jurisdiction and its "activist chief judge", arguably fueling a series of corporate exits that Delaware lawmakers have attempted to staunch with legislation.

In reviewing whether Musk had undue influence in being granted that 2018 pay package, a respected academic expert observed that the court recognized that other "high-profile executives" like Facebook's founder and Amazon's Jeff Bezos were not granted this kind of performance-linked deals.