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Tesla shareholders convened this Thursday to vote on a massive compensation package for CEO Elon Musk worth approximately nearly $1 trillion. Upon approval, this package would showcase market faith that the tech magnate can lead the car company into an era dominated by AI technology and advanced machinery. Should it fail, Tesla could confront the exit of a key figure who once made the brand synonymous with zero-emission cars.

Historic Goals and Market Capitalization

Should Musk achieve the ambitious targets detailed in the pay package revealed at Tesla's shareholder gathering, he could be crowned the world's first trillionaire. For this to happen, he must steer Tesla to a astronomical $8.5 trillion in company worth, which is an eightfold increase its existing market cap. Moreover, he will be tasked to launch millions self-driving cars and advanced androids, while upholding the financial performance in the massive revenue figures throughout the coming ten years.

Payment Breakdown

The primary objectives of the compensation plan, divided into a dozen phases, delineate a path for Tesla to achieve its colossal valuation. Should targets be met, Musk would be able to realize gains on an extra 12% of the corporation's shares. To be eligible, he must remain vested with the corporation for a minimum of 7.5 years. Additionally, he must contribute to forming a future leadership strategy for the enterprise he has headed for over 20 years. The share grants awarded by the new compensation plan, combined with shares guaranteed in his previous compensation plan, would leave Musk with 25 percent equity of Tesla's shares. In early November, Tesla shares were valued near its annual peak, at approximately $450 per share.

Ambitious Targets

Throughout a decade, Musk will be obligated to deliver 20 million EVs to customers, sell 10 million active full self-driving subscriptions, produce and launch 1 million advanced androids, and introduce 1 million self-driving cabs in commercial service.

Musk will furthermore be required to increase the company to $400 billion in tangible revenue for four straight quarters. Tesla's tangible revenue for the third quarter of 2025 were $4.2 billion, 9 percent lower from the previous year.

As of November, Musk's fortune was estimated at $460 billion, the highest in the globe, as reported by financial data.

Reinstating a Invalidated Plan

Investors are also reviewing a plan that would reward Musk after his 2018 compensation plan was invalidated by a legal authority in Delaware. The remuneration deal, valued at around $56 billion, was disputed by a single stockholder who succeeded legally. The Delaware court of chancery rejected Musk's compensation plan twice. Upon stockholder approval the proposal in Thursday's vote, Musk is likely to be awarded the huge sum whether or not Tesla and Musk win an appeal of the legal matter.

After Musk's 2018 pay package was originally overturned, he transferred Tesla's corporate home from Delaware to Texas. He did the same with the rocket firm and other companies' headquarters. In last year, per Texas statutes, shareholders for a second time voted to approve the pay package.

But Delaware's often referred to as "equity court" again denied one of the largest CEO pay deals in recent times. After that negative decision, Musk took to social media to express dissatisfaction with the state and its "activist chief judge", possibly igniting a series of corporate exits that Delaware officials have attempted to staunch with regulatory measures.

In considering whether Musk had excessive control in being given that 2018 pay package, a respected academic expert remarked that the court noted that other "superstar CEOs" like the Meta chief and the e-commerce pioneer were not granted this sort of incentive-based contracts.