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Investors in the electric car maker assembled on Thursday to determine on a substantial compensation package for CEO Elon Musk worth approximately close to $1 trillion. If approved, this deal would showcase shareholder trust that the billionaire can guide the vehicle manufacturer into an period defined by AI technology and robotics. If rejected, Tesla could potentially face the loss of a visionary leader who historically built the brand interchangeable with EVs.

Record-Breaking Targets and Company Valuation

Upon reaching the ambitious objectives specified in the compensation plan introduced at Tesla's shareholder gathering, he could emerge as the first-ever trillionaire. To accomplish this, he must steer Tesla to a monumental $8.5 trillion in market value, which is an eightfold increase its present worth. Moreover, he will be required to deploy countless autonomous vehicles and humanoid robots, while upholding the company's bottom line in the hundreds of billions in the upcoming decade.

Reward System

The primary objectives of the pay package, divided into twelve stages, delineate a trajectory for Tesla to reach its enormous worth. If successful, Musk would be eligible to benefit from an extra 12% of the firm's equity. To be eligible, he must stay committed with the firm for at least 7.5 years. He will also contribute to forming a long-term succession plan for the organization he has led for over 20 years. The stock options provided by the latest pay package, combined with shares promised in his previous compensation plan, would leave Musk with 25% ownership of Tesla's equity. As of early November, Tesla shares were valued near its annual peak, at around $450 per share.

Ambitious Targets

Throughout a decade, Musk will be obligated to manufacture 20 million zero-emission cars to customers, sell 10 million operational autonomous driving plans, create and distribute 1 million advanced androids, and introduce 1 million robotaxis in paid operations.

Musk will additionally be required to increase the company to $400 billion in tangible revenue for four consecutive quarters. Tesla's real profits for the third quarter of 2025 were $4.2 billion, 9 percent lower from the same period last year.

In November, Musk's personal wealth was valued at $460 billion, the top in the world, based on wealth indexes.

Reinstating a Revoked Deal

Stockholders are additionally considering a plan that would compensate Musk after his earlier remuneration deal was overturned by a legal authority in Delaware. The pay plan, worth an estimated $56 billion, was disputed by a sole shareholder who succeeded legally. The Delaware judicial system denied Musk's pay package on multiple instances. Should investors pass the plan in the Thursday ballot, Musk is expected to be awarded the massive amount irrespective of whether Tesla and Musk succeed in appealing of the lawsuit.

Subsequent to Musk's 2018 pay package was initially invalidated, he transferred Tesla's legal headquarters from Delaware to Texas. He repeated the action with SpaceX and additional corporate bases. In 2024, according to Texas regulations, shareholders again approved the remuneration deal.

But Delaware's often referred to as "judicial body" again rejected one of the most substantial CEO pay deals in recent times. After that adverse judgment, Musk took to social media to voice displeasure with the jurisdiction and its "influential presiding justice", arguably igniting a number of company relocations that Delaware lawmakers have attempted to staunch with regulatory measures.

In evaluating whether Musk had excessive control in being given that previous compensation plan, a prominent legal scholar commented that the judicial authority noted that other "superstar CEOs" like Meta's Mark Zuckerberg and the Amazon founder were not granted this type of goal-oriented agreements.