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Tesla shareholders convened on Thursday to vote on a substantial compensation package for CEO Elon Musk estimated at close to $1 trillion. Should it pass, this package would demonstrate shareholder trust that the entrepreneur can steer the car company into an period dominated by artificial intelligence and advanced machinery. If rejected, Tesla could potentially face the loss of a key figure who historically built the corporation equivalent with electric vehicles.

Historic Targets and Market Capitalization

Should Musk achieve the formidable objectives outlined in the compensation plan introduced at Tesla's shareholder gathering, he could become the pioneering person with a trillion-dollar net worth. To reach this goal, he must steer Tesla to a staggering $8.5 trillion in market capitalization, which is an eightfold increase its existing market cap. Moreover, he will be required to launch countless autonomous vehicles and humanoid robots, while sustaining the financial performance in the hundreds of billions of dollars in the upcoming decade.

Payment Breakdown

The primary objectives of the remuneration structure, split into 12 tranches, chart a trajectory for Tesla to achieve its colossal valuation. Should targets be met, Musk would be in a position to benefit from an extra 12% of the corporation's shares. For this to occur, he must maintain involvement with the company for at least 7.5 years. Additionally, he must contribute to forming a future leadership strategy for the organization he has managed for in excess of 20 years. The stock options provided by the new compensation plan, combined with shares guaranteed in his previous compensation plan, would grant Musk with 25 percent equity of Tesla's stock. In early November, Tesla shares were valued approaching its yearly maximum, at approximately $450 each share.

Ambitious Targets

Throughout a ten-year period, Musk will be obligated to produce 20 million EVs to customers, sell 10 million active full self-driving subscriptions, develop and sell 1 million humanoid robots, and launch 1 million autonomous taxis in revenue-generating use.

Musk will also be tasked to elevate the company to $400 billion in tangible revenue for four consecutive quarters. Tesla's actual earnings for the third quarter of 2025 were $4.2 billion, a 9% decrease from the previous year.

In November, Musk's net worth was pegged at $460 billion, the top in the world, as reported by financial data.

Restoring a Revoked Plan

Stockholders are furthermore considering a plan that would remunerate Musk after his earlier remuneration deal was voided by a court in Delaware. The remuneration deal, valued at around $56 billion, was contested by a sole shareholder who won his case. The Delaware court of chancery dismissed Musk's remuneration deal on multiple instances. If shareholders approve the plan in Thursday's vote, Musk is likely to be awarded the huge sum irrespective of whether Tesla and Musk succeed in appealing of the lawsuit.

Following Musk's 2018 pay package was originally overturned, he moved Tesla's business registration to Texas from Delaware. He followed suit with his aerospace company and additional corporate bases. In last year, according to Texas regulations, shareholders for a second time voted to approve the pay package.

But Delaware's often referred to as "equity court" once again rejected one of the biggest CEO compensation packages in modern history. In the wake of that negative decision, Musk posted on his accounts to voice displeasure with the jurisdiction and its "influential presiding justice", arguably igniting a series of corporate exits that Delaware legislators have attempted to staunch with legislation.

In considering whether Musk had undue influence in being given that earlier remuneration deal, a prominent law professor remarked that the court noted that other "high-profile executives" like the Meta chief and Amazon's Jeff Bezos were not granted this type of incentive-based contracts.