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Investors in the electric car maker gathered on Thursday to determine on a substantial compensation package for CEO Elon Musk worth approximately around $1 trillion. If approved, this plan would showcase investor confidence that the tech magnate can guide the automaker into an era defined by artificial intelligence and automation. If rejected, Tesla could potentially face the loss of a pioneering CEO who historically built the company name interchangeable with EVs.

Historic Targets and Company Valuation

Should Musk achieve the lofty milestones detailed in the compensation plan revealed at Tesla's shareholder gathering, he could become the first-ever person with a trillion-dollar net worth. To accomplish this, he must steer Tesla to a astronomical $8.5 trillion in company worth, which is 800% of its existing market cap. Furthermore, he will be required to deploy countless driverless automobiles and humanoid robots, while upholding the company's bottom line in the massive revenue figures over the next decade.

Reward System

The main goals of the compensation plan, divided into twelve stages, outline a roadmap for Tesla to achieve its colossal market capitalization. If successful, Musk would be able to cash in an further 12% of the firm's equity. To be eligible, he must remain vested with the corporation for no less than 7.5 years. Additionally, he must assist in creating a future leadership strategy for the organization he has headed for over 20 years. The equity incentives awarded by the updated remuneration deal, alongside shares assured in his earlier deal, would grant Musk with 25% ownership of Tesla's shares. By the start of November, Tesla stock was trading near its yearly maximum, at approximately $450 per stock.

Formidable Objectives

Throughout a ten-year period, Musk will be required to deliver 20 million zero-emission cars to consumers, sell 10 million live FSD memberships, produce and launch 1 million advanced androids, and deploy 1 million robotaxis in revenue-generating use.

Musk will additionally be required to elevate the company to $400 billion in tangible revenue for a full year. Tesla's real profits for the third quarter of 2025 were $4.2 billion, down 9% from the same period last year.

By November, Musk's fortune was pegged at $460 billion, the highest in the globe, based on financial data.

Reinstating a Revoked Plan

Investors are furthermore reviewing a plan that would reward Musk after his earlier remuneration deal was invalidated by a court in Delaware. The remuneration deal, estimated to be $56 billion, was contested by a individual investor who won his case. The Delaware judicial system dismissed Musk's compensation plan on two occasions. Should investors pass the proposal in the Thursday ballot, Musk is set to be awarded the massive amount regardless of if Tesla and Musk win an appeal of the lawsuit.

Subsequent to Musk's earlier remuneration deal was initially invalidated, he relocated Tesla's business registration to Texas from Delaware. He followed suit with SpaceX and additional corporate bases. In the previous year, under Texas law, shareholders again passed the pay package.

But Delaware's so-called "court of equity" for a second time ruled against one of the largest CEO pay deals in recent times. In the wake of that negative decision, Musk posted on his accounts to express dissatisfaction with the region and its "influential presiding justice", perhaps igniting a number of company relocations that Delaware legislators have tried to stop with new laws.

In reviewing whether Musk had excessive control in being awarded that 2018 pay package, a prominent law professor remarked that the court noted that other "high-profile executives" like the Meta chief and the Amazon founder were not awarded this type of incentive-based contracts.