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Investors in the electric car maker convened on Thursday to vote on a enormous pay deal for the company's leader worth approximately close to $1 trillion. Upon approval, this package would demonstrate market faith that the tech magnate can lead the automaker into an period dominated by machine learning and advanced machinery. If denied, Tesla could potentially face the exit of a pioneering CEO who once made the brand equivalent with EVs.

Historic Targets and Market Capitalization

If the CEO meets the ambitious targets specified in the remuneration deal introduced at Tesla's shareholder gathering, he could emerge as the world's first person with a trillion-dollar net worth. For this to happen, he must lead Tesla to a astronomical $8.5 trillion in market value, which is eight times its existing market cap. Additionally, he will be tasked to deploy millions driverless automobiles and humanoid robots, while maintaining the financial performance in the hundreds of billions in the upcoming decade.

Reward System

The primary objectives of the compensation plan, divided into twelve stages, chart a path for Tesla to attain its colossal valuation. Should targets be met, Musk would be in a position to realize gains on an additional 12% of the firm's equity. To be eligible, he must stay committed with the company for at least 7.5 years. He will also help develop a long-term succession plan for the organization he has headed for over 20 years. The equity incentives offered by the latest pay package, in addition to shares promised in his earlier deal, would grant Musk with 25% ownership of Tesla's shares. In early November, Tesla stock was trading close to its yearly maximum, at around $450 per share.

Ambitious Targets

Throughout a decade, Musk will be obligated to produce 20 million electric vehicles to customers, market 10 million operational autonomous driving plans, create and distribute 1 million humanoid robots, and introduce 1 million self-driving cabs in commercial service.

Musk will also be obligated to increase the firm to $400 billion in tangible revenue for a full year. Tesla's real profits for the third quarter of 2025 were $4.2 billion, a 9% decrease from the previous year.

As of November, Musk's personal wealth was estimated at $460 billion, the top in the world, as reported by wealth indexes.

Reinstating a Revoked Package

Shareholders are also evaluating a proposal that would reward Musk after his 2018 compensation plan was overturned by a legal authority in Delaware. The pay plan, estimated to be $56 billion, was contested by a individual investor who prevailed in court. The Delaware judicial system denied Musk's remuneration deal on multiple instances. If shareholders approve the plan in the Thursday ballot, Musk is likely to be granted the massive amount irrespective of whether Tesla and Musk overturn the ruling of the legal matter.

After Musk's earlier remuneration deal was initially invalidated, he transferred Tesla's corporate home to Texas from Delaware. He repeated the action with his aerospace company and other companies' headquarters. In last year, under Texas law, shareholders for a second time approved the remuneration deal.

But Delaware's so-called "judicial body" once again rejected one of the largest CEO pay deals in contemporary business. After that unfavorable ruling, Musk used online platforms to show frustration with the jurisdiction and its "influential presiding justice", arguably igniting a number of company relocations that Delaware legislators have sought to curb with new laws.

In reviewing whether Musk had improper sway in being granted that 2018 pay package, a respected academic expert remarked that the judge recognized that other "high-profile executives" like the Meta chief and the Amazon founder were not given this sort of goal-oriented agreements.