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Investors in the electric car maker convened this Thursday to vote on a massive compensation package for CEO Elon Musk worth approximately close to $1 trillion. If approved, this deal would showcase market faith that the billionaire can steer the automaker into an period defined by AI technology and automation. Should it fail, Tesla could confront the exit of a key figure who once made the corporation synonymous with electric vehicles.

Record-Breaking Goals and Market Capitalization

If the CEO meets the lofty targets outlined in the compensation plan presented at Tesla's shareholder gathering, he could be crowned the world's first trillionaire. For this to happen, he must lead Tesla to a astronomical $8.5 trillion in market capitalization, which is 800% of its current valuation. Additionally, he will be tasked to launch numerous self-driving cars and humanoid robots, while maintaining the financial performance in the massive revenue figures throughout the coming ten years.

Reward System

The primary objectives of the remuneration structure, organized into twelve stages, outline a roadmap for Tesla to reach its colossal market capitalization. Upon achievement, Musk would be eligible to realize gains on an additional 12% of the corporation's shares. For this to occur, he must remain vested with the corporation for no less than 7.5 years. He will also contribute to forming a future leadership strategy for the enterprise he has headed for more than 20 years. The equity incentives provided by the latest pay package, in addition to shares promised in his earlier deal, would leave Musk with 25 percent equity of Tesla's equity. By the start of November, Tesla shares were valued close to its annual peak, at around $450 each share.

Ambitious Targets

Over the course of a ten-year period, Musk will be tasked to manufacture 20 million EVs to consumers, market 10 million live FSD memberships, produce and launch 1 million bipedal machines, and introduce 1 million robotaxis in commercial service.

Musk will also be obligated to bring the corporation to $400 billion in tangible revenue for four straight quarters. Tesla's actual earnings for the Q3 2025 were $4.2 billion, 9 percent lower from the same period last year.

In November, Musk's net worth was valued at $460 billion, the highest in the planet, according to financial data.

Reviving a Revoked Plan

Investors are also considering a plan that would remunerate Musk after his previous pay package was invalidated by a judicial body in Delaware. The compensation package, valued at around $56 billion, was challenged by a single stockholder who won his case. The Delaware court of chancery denied Musk's pay package on multiple instances. If shareholders approve the arrangement in the Thursday ballot, Musk is likely to be paid the substantial payout whether or not Tesla and Musk overturn the ruling of the legal matter.

Following Musk's previous compensation plan was first rescinded, he relocated Tesla's legal headquarters to Texas from Delaware. He did the same with his aerospace company and other companies' headquarters. In 2024, under Texas law, shareholders for a second time approved the compensation plan.

But Delaware's known as "judicial body" for a second time rejected one of the largest CEO pay deals in recent times. In the wake of that adverse judgment, Musk took to social media to show frustration with the state and its "activist chief judge", perhaps igniting a number of company relocations that Delaware officials have attempted to staunch with regulatory measures.

In considering whether Musk had excessive control in being given that 2018 pay package, a noted legal scholar commented that the court acknowledged that other "superstar CEOs" like Facebook's founder and the Amazon founder were not granted this type of goal-oriented agreements.