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Investors in the electric car maker gathered on Thursday to vote on a massive compensation package for CEO Elon Musk valued at close to $1 trillion. If approved, this package would signal shareholder trust that the billionaire can lead the vehicle manufacturer into an period dominated by machine learning and robotics. If rejected, Tesla could potentially face the departure of a visionary leader who once made the brand interchangeable with zero-emission cars.

Record-Breaking Targets and Company Valuation

If the CEO meets the formidable milestones outlined in the compensation plan presented at Tesla's annual meeting, he could become the first-ever person with a trillion-dollar net worth. For this to happen, he must guide Tesla to a staggering $8.5 trillion in market capitalization, which is an eightfold increase its existing market cap. Additionally, he will be obligated to launch countless driverless automobiles and humanoid robots, while sustaining the corporate profits in the hundreds of billions of dollars over the next decade.

Payment Breakdown

The primary objectives of the compensation plan, split into 12 tranches, delineate a trajectory for Tesla to attain its massive market capitalization. Upon achievement, Musk would be able to benefit from an extra 12% of the firm's equity. To be eligible, he must maintain involvement with the company for a minimum of 7.5 years. Additionally, he must help develop a future leadership strategy for the enterprise he has headed for more than 20 years. The share grants awarded by the latest pay package, combined with shares promised in his previous compensation plan, would grant Musk with 25 percent equity of Tesla's shares. By the start of November, Tesla stock was trading near its annual peak, at roughly $450 per share.

Formidable Objectives

Throughout a ten-year period, Musk will be tasked to deliver 20 million EVs to consumers, distribute 10 million live FSD memberships, create and distribute 1 million advanced androids, and launch 1 million autonomous taxis in commercial service.

Musk will also be required to bring the firm to $400 billion in actual earnings for four consecutive quarters. Tesla's actual earnings for the Q3 2025 were $4.2 billion, a 9% decrease from the previous year.

As of November, Musk's fortune was valued at $460 billion, the leading in the globe, according to wealth indexes.

Reviving a Revoked Plan

Shareholders are also evaluating a proposal that would remunerate Musk after his previous pay package was invalidated by a judicial body in Delaware. The pay plan, estimated to be $56 billion, was contested by a single stockholder who won his case. The state court dismissed Musk's remuneration deal twice. Upon stockholder approval the plan in the Thursday ballot, Musk is set to be awarded the massive amount irrespective of whether Tesla and Musk overturn the ruling of the legal matter.

Subsequent to Musk's previous compensation plan was originally overturned, he transferred Tesla's business registration from Delaware to Texas. He did the same with his aerospace company and other business entities. In the previous year, under Texas law, shareholders again voted to approve the pay package.

But Delaware's known as "court of equity" once again denied one of the largest CEO payouts in recent times. Following that negative decision, Musk posted on his accounts to express dissatisfaction with the region and its "prominent judicial figure", possibly igniting a number of company relocations that Delaware lawmakers have attempted to staunch with legislation.

In reviewing whether Musk had undue influence in being awarded that previous compensation plan, a respected law professor remarked that the judge acknowledged that other "celebrity leaders" like Meta's Mark Zuckerberg and the e-commerce pioneer were not granted this sort of goal-oriented agreements.