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Tesla shareholders convened on Thursday to vote on a enormous pay deal for CEO Elon Musk worth approximately nearly $1 trillion. If approved, this deal would signal shareholder trust that the billionaire can steer the vehicle manufacturer into an age shaped by machine learning and robotics. If rejected, Tesla could potentially face the exit of a visionary leader who once made the corporation equivalent with zero-emission cars.

Record-Breaking Targets and Market Capitalization

Upon reaching the formidable objectives specified in the pay package presented at Tesla's corporate assembly, he could become the first-ever person with a trillion-dollar net worth. To reach this goal, he must guide Tesla to a astronomical $8.5 trillion in market value, which is an eightfold increase its existing market cap. Moreover, he will be tasked to roll out countless driverless automobiles and humanoid robots, while upholding the corporate profits in the massive revenue figures in the upcoming decade.

Reward System

The primary objectives of the pay package, divided into a dozen phases, chart a path for Tesla to reach its colossal valuation. If successful, Musk would be in a position to benefit from an additional 12% of the firm's equity. For this to occur, he must maintain involvement with the firm for no less than 7.5 years. Furthermore, he is required to contribute to forming a corporate transition roadmap for the enterprise he has managed for more than 20 years. The share grants awarded by the updated remuneration deal, alongside shares promised in his 2018 package, would result in Musk with 25% ownership of Tesla's stock. In early November, Tesla shares were valued near its annual peak, at approximately $450 per stock.

Ambitious Targets

During a ten-year period, Musk will be obligated to deliver 20 million electric vehicles to customers, sell 10 million active full self-driving subscriptions, create and distribute 1 million advanced androids, and introduce 1 million autonomous taxis in commercial service.

Musk will also be tasked to elevate the firm to $400 billion in tangible revenue for four straight quarters. Tesla's actual earnings for the Q3 2025 were $4.2 billion, down 9% from the same period last year.

In November, Musk's net worth was estimated at $460 billion, the top in the globe, as reported by financial data.

Reviving a Revoked Plan

Shareholders are furthermore reviewing a proposal that would compensate Musk after his previous pay package was voided by a legal authority in Delaware. The compensation package, worth an estimated $56 billion, was disputed by a single stockholder who succeeded legally. The Delaware judicial system rejected Musk's remuneration deal on two occasions. Should investors pass the plan in the shareholder meeting, Musk is set to be granted the massive amount irrespective of whether Tesla and Musk overturn the ruling of the legal matter.

After Musk's previous compensation plan was initially invalidated, he moved Tesla's business registration to Texas from Delaware. He repeated the action with SpaceX and other companies' headquarters. In 2024, under Texas law, shareholders again passed the pay package.

But Delaware's so-called "court of equity" once again denied one of the biggest CEO pay deals in recent times. In the wake of that negative decision, Musk took to social media to show frustration with the state and its "prominent judicial figure", arguably sparking a series of corporate exits that Delaware lawmakers have sought to curb with regulatory measures.

In considering whether Musk had excessive control in being granted that previous compensation plan, a prominent academic expert commented that the judicial authority acknowledged that other "celebrity leaders" like the Meta chief and Amazon's Jeff Bezos were not awarded this type of goal-oriented agreements.