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Investors in the electric car maker assembled this Thursday to vote on a substantial compensation package for CEO Elon Musk worth approximately close to $1 trillion. Upon approval, this deal would showcase shareholder trust that the billionaire can lead the car company into an period defined by AI technology and robotics. If denied, Tesla could confront the loss of a key figure who previously established the company name synonymous with EVs.

Record-Breaking Goals and Company Valuation

Upon reaching the lofty milestones outlined in the pay package introduced at Tesla's corporate assembly, he could emerge as the pioneering trillionaire. For this to happen, he must guide Tesla to a monumental $8.5 trillion in market capitalization, which is eight times its existing market cap. Moreover, he will be tasked to launch numerous autonomous vehicles and bipedal machines, while sustaining the corporate profits in the hundreds of billions over the next decade.

Reward System

The primary objectives of the pay package, split into twelve stages, chart a trajectory for Tesla to reach its colossal market capitalization. Upon achievement, Musk would be eligible to cash in an additional 12% of the company's stock. For this to occur, he must stay committed with the company for a minimum of 7.5 years. Furthermore, he is required to contribute to forming a corporate transition roadmap for the enterprise he has headed for in excess of 20 years. The share grants offered by the updated remuneration deal, in addition to shares guaranteed in his 2018 package, would leave Musk with 25% ownership of Tesla's stock. By the start of November, Tesla shares were valued close to its yearly maximum, at around $450 per share.

Ambitious Targets

Over the course of a ten years, Musk will be required to produce 20 million zero-emission cars to consumers, market 10 million active full self-driving subscriptions, develop and sell 1 million advanced androids, and introduce 1 million autonomous taxis in paid operations.

Musk will also be tasked to increase the company to $400 billion in real profits for four consecutive quarters. 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 estimated at $460 billion, the leading in the planet, as reported by market tracking.

Reinstating a Invalidated Deal

Investors are additionally evaluating a plan that would compensate Musk after his earlier remuneration deal was overturned by a legal authority in Delaware. The pay plan, valued at around $56 billion, was disputed by a individual investor who prevailed in court. The Delaware court of chancery rejected Musk's pay package on multiple instances. If shareholders approve the proposal in Thursday's vote, Musk is likely to be granted the huge sum irrespective of whether Tesla and Musk overturn the ruling of the lawsuit.

Subsequent to Musk's previous compensation plan was originally overturned, he relocated Tesla's legal headquarters to Texas from Delaware. He followed suit with the rocket firm and other companies' headquarters. In last year, according to Texas regulations, shareholders again approved the remuneration deal.

But Delaware's so-called "court of equity" again rejected one of the most substantial CEO payouts in contemporary business. Following that unfavorable ruling, Musk used online platforms to express dissatisfaction with the region and its "influential presiding justice", possibly igniting a number of company relocations that Delaware officials have tried to stop with regulatory measures.

In considering whether Musk had undue influence in being awarded that previous compensation plan, a prominent legal scholar remarked that the judge recognized that other "superstar CEOs" like Facebook's founder and Amazon's Jeff Bezos were not awarded this kind of performance-linked deals.