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Investors in the electric car maker convened this Thursday to decide on a massive compensation package for CEO Elon Musk estimated at nearly $1 trillion. If approved, this deal would showcase shareholder trust that the entrepreneur can guide the car company into an period shaped by AI technology and automation. If rejected, Tesla could potentially face the loss of a pioneering CEO who historically built the company name synonymous with zero-emission cars.

Historic Targets and Market Capitalization

If the CEO meets the ambitious milestones outlined in the pay package introduced at Tesla's corporate assembly, he could emerge as the first-ever trillionaire. To accomplish this, he must guide Tesla to a astronomical $8.5 trillion in market capitalization, which is 800% of its current valuation. Furthermore, he will be required to deploy millions driverless automobiles and bipedal machines, while upholding the corporate profits in the massive revenue figures over the next decade.

Reward System

The main goals of the compensation plan, split into a dozen phases, delineate a trajectory for Tesla to reach its colossal market capitalization. Should targets be met, Musk would be in a position to benefit from an further 12% of the corporation's shares. To qualify, he must remain vested with the firm for a minimum of 7.5 years. He will also assist in creating a future leadership strategy for the enterprise he has managed for more than 20 years. The equity incentives provided by the new compensation plan, combined with shares guaranteed in his 2018 package, would leave Musk with 25% ownership of Tesla's equity. By the start of November, Tesla shares were valued close to its 52-week high, at around $450 per share.

Ambitious Targets

Throughout a decade, Musk will be tasked to produce 20 million zero-emission cars to consumers, sell 10 million active full self-driving subscriptions, produce and launch 1 million humanoid robots, and introduce 1 million robotaxis in commercial service.

Musk will furthermore be obligated to increase the company to $400 billion in actual earnings for a full year. Tesla's tangible revenue for the Q3 2025 were $4.2 billion, a 9% decrease from the previous year.

In November, Musk's personal wealth was valued at $460 billion, the top in the globe, according to market tracking.

Restoring a Revoked Plan

Shareholders are also considering a arrangement that would remunerate Musk after his 2018 compensation plan was overturned by a legal authority in Delaware. The compensation package, valued at around $56 billion, was contested by a sole shareholder who succeeded legally. The Delaware court of chancery dismissed Musk's remuneration deal on two occasions. Upon stockholder approval the arrangement in the Thursday ballot, Musk is set to be awarded the huge sum whether or not Tesla and Musk overturn the ruling of the legal matter.

Subsequent to Musk's earlier remuneration deal was originally overturned, he moved Tesla's corporate home out of Delaware and into Texas. He did the same with his aerospace company and other business entities. In 2024, under Texas law, shareholders once again passed the remuneration deal.

But Delaware's often referred to as "equity court" for a second time rejected one of the most substantial CEO compensation packages in contemporary business. In the wake of that negative decision, Musk took to social media to express dissatisfaction with the region and its "prominent judicial figure", possibly sparking a number of company relocations that Delaware legislators have sought to curb with new laws.

In evaluating whether Musk had undue influence in being given that earlier remuneration deal, a respected law professor observed that the judge acknowledged that other "celebrity leaders" like the Meta chief and Amazon's Jeff Bezos were not given this kind of performance-linked deals.