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Tesla shareholders assembled this Thursday to vote on a massive compensation package for the company's leader estimated at nearly $1 trillion. Should it pass, this plan would demonstrate shareholder trust that the tech magnate can lead the vehicle manufacturer into an era shaped by artificial intelligence and advanced machinery. Should it fail, Tesla could confront the loss of a pioneering CEO who previously established the brand interchangeable with zero-emission cars.

Record-Breaking Targets and Company Valuation

Upon reaching the formidable objectives outlined in the remuneration deal introduced at Tesla's shareholder gathering, he could be crowned the first-ever trillionaire. For this to happen, he must guide Tesla to a monumental $8.5 trillion in market value, which is eight times its current valuation. Moreover, he will be required to roll out numerous autonomous vehicles and bipedal machines, while maintaining the financial performance in the massive revenue figures throughout the coming ten years.

Reward System

The main goals of the pay package, divided into a dozen phases, outline a roadmap for Tesla to attain its enormous valuation. Upon achievement, Musk would be in a position to cash in an extra 12% of the firm's equity. To be eligible, he must maintain involvement with the firm for a minimum of 7.5 years. Furthermore, he is required to assist in creating a long-term succession plan for the enterprise he has managed for over 20 years. The share grants offered by the new compensation plan, alongside shares guaranteed in his 2018 package, would leave Musk with a quarter stake of Tesla's shares. In early November, Tesla shares were valued approaching its 52-week high, at approximately $450 per share.

Lofty Goals

Throughout a ten-year period, Musk will be obligated to produce 20 million electric vehicles to consumers, market 10 million live FSD memberships, develop and sell 1 million humanoid robots, and deploy 1 million autonomous taxis in commercial service.

Musk will additionally be required to increase the company to $400 billion in real profits for four consecutive quarters. Tesla's actual earnings for the third quarter of 2025 were $4.2 billion, a 9% decrease from the year before.

In November, Musk's personal wealth was estimated at $460 billion, the top in the world, as reported by market tracking.

Restoring a Rescinded Plan

Investors are furthermore reviewing a plan that would reward Musk after his earlier remuneration deal was overturned by a judicial body in Delaware. The remuneration deal, estimated to be $56 billion, was contested by a sole shareholder who succeeded legally. The Delaware judicial system dismissed Musk's remuneration deal twice. Should investors pass the arrangement in the Thursday ballot, Musk is likely to be paid the huge sum irrespective of whether Tesla and Musk succeed in appealing of the lawsuit.

Following Musk's 2018 pay package was initially invalidated, he relocated Tesla's business registration to Texas from Delaware. He did the same with SpaceX and additional corporate bases. In last year, under Texas law, shareholders again voted to approve the pay package.

But Delaware's often referred to as "judicial body" again denied one of the most substantial CEO payouts in modern history. After that adverse judgment, Musk used online platforms to show frustration with the jurisdiction and its "prominent judicial figure", possibly igniting a wave of business departures that Delaware legislators have attempted to staunch with regulatory measures.

In evaluating whether Musk had excessive control in being awarded that earlier remuneration deal, a prominent law professor commented that the judicial authority acknowledged that other "celebrity leaders" like Facebook's founder and Amazon's Jeff Bezos were not given this kind of goal-oriented agreements.