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Investors in the electric car maker convened on Thursday to vote on a substantial pay deal for CEO Elon Musk estimated at nearly $1 trillion. Should it pass, this package would demonstrate shareholder trust that the billionaire can guide the car company into an period shaped by artificial intelligence and automation. If denied, Tesla could potentially face the departure of a key figure who historically built the corporation synonymous with electric vehicles.

Record-Breaking Goals and Market Capitalization

If the CEO meets the ambitious milestones outlined in the pay package revealed at Tesla's annual meeting, he could be crowned the pioneering trillionaire. To reach this goal, he must guide Tesla to a monumental $8.5 trillion in market capitalization, which is 800% of its existing market cap. Furthermore, he will be tasked to launch numerous self-driving cars and bipedal machines, while upholding the company's bottom line in the massive revenue figures in the upcoming decade.

Reward System

The primary objectives of the pay package, split into a dozen phases, outline a trajectory for Tesla to achieve its colossal worth. Should targets be met, Musk would be in a position to cash in an further 12% of the firm's equity. To qualify, he must maintain involvement with the company for at least 7.5 years. Furthermore, he is required to help develop a corporate transition roadmap for the enterprise he has managed for in excess of 20 years. The share grants awarded by the updated remuneration deal, alongside shares assured in his 2018 package, would result in Musk with 25% ownership of Tesla's shares. In early November, Tesla equity was priced approaching its 52-week high, at roughly $450 per share.

Ambitious Targets

Over the course of a ten-year period, Musk will be tasked to produce 20 million EVs to customers, market 10 million active full self-driving subscriptions, produce and launch 1 million humanoid robots, and deploy 1 million robotaxis in paid operations.

Musk will additionally be required to elevate the corporation to $400 billion in tangible revenue for four straight quarters. Tesla's tangible revenue for the third quarter of 2025 were $4.2 billion, a 9% decrease from the year before.

As of November, Musk's fortune was valued at $460 billion, the highest in the world, according to financial data.

Restoring a Rescinded Plan

Stockholders are additionally considering a proposal that would compensate Musk after his earlier remuneration deal was voided by a court in Delaware. The pay plan, valued at around $56 billion, was disputed by a single stockholder who won his case. The Delaware judicial system dismissed Musk's pay package on multiple instances. Upon stockholder approval the proposal in Thursday's vote, Musk is expected to be paid the huge sum irrespective of whether Tesla and Musk overturn the ruling of the case.

Following Musk's previous compensation plan was originally overturned, he moved 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 for a second time passed the pay package.

But Delaware's known as "equity court" for a second time ruled against one of the largest CEO compensation packages in recent times. Following that negative decision, Musk used online platforms to voice displeasure with the state and its "prominent judicial figure", possibly igniting a series of corporate exits that Delaware legislators have tried to stop with new laws.

In considering whether Musk had improper sway in being awarded that 2018 pay package, a noted law professor observed that the judicial authority acknowledged that other "high-profile executives" like Meta's Mark Zuckerberg and Amazon's Jeff Bezos were not awarded this sort of incentive-based contracts.