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Tesla shareholders gathered this Thursday to determine on a substantial pay deal for CEO Elon Musk estimated at close to $1 trillion. Upon approval, this plan would showcase shareholder trust that the entrepreneur can guide the vehicle manufacturer into an era defined by machine learning and advanced machinery. If rejected, Tesla could confront the exit of a pioneering CEO who once made the brand equivalent with EVs.

Historic Goals and Company Valuation

Upon reaching the formidable targets outlined in the compensation plan presented at Tesla's shareholder gathering, he could be crowned the first-ever person with a trillion-dollar net worth. To accomplish this, he must guide Tesla to a staggering $8.5 trillion in market capitalization, which is eight times its existing market cap. Furthermore, he will be tasked to roll out countless self-driving cars and bipedal machines, while upholding the company's bottom line in the hundreds of billions of dollars over the next decade.

Compensation Structure

The primary objectives of the compensation plan, split into a dozen phases, delineate a path for Tesla to achieve its colossal worth. Should targets be met, Musk would be eligible to cash in an extra 12% of the company's stock. To qualify, he must remain vested with the firm for no less than 7.5 years. Furthermore, he is required to contribute to forming a long-term succession plan for the organization he has managed for over 20 years. The share grants awarded by the updated remuneration deal, alongside shares promised in his previous compensation plan, would leave Musk with a quarter stake of Tesla's shares. As of early November, Tesla shares were valued approaching its 52-week high, at roughly $450 per stock.

Ambitious Targets

Throughout a decade, Musk will be required to deliver 20 million EVs to customers, distribute 10 million operational autonomous driving plans, produce and launch 1 million bipedal machines, and introduce 1 million autonomous taxis in commercial service.

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

In November, Musk's net worth was pegged at $460 billion, the top in the globe, based on financial data.

Reviving a Invalidated Plan

Investors are furthermore considering a proposal that would compensate Musk after his 2018 compensation plan was invalidated by a court in Delaware. The compensation package, worth an estimated $56 billion, was challenged by a single stockholder who won his case. The Delaware judicial system denied Musk's compensation plan twice. If shareholders approve the plan in Thursday's vote, Musk is set to be paid the huge sum regardless of if Tesla and Musk succeed in appealing of the lawsuit.

Following Musk's 2018 pay package was first rescinded, he transferred Tesla's business registration out of Delaware and into Texas. He followed suit with SpaceX and other companies' headquarters. In the previous year, according to Texas regulations, shareholders again passed the pay package.

But Delaware's often referred to as "court of equity" once again rejected one of the most substantial CEO pay deals in contemporary business. After that negative decision, Musk used online platforms to express dissatisfaction with the state and its "prominent judicial figure", arguably sparking a series of corporate exits that Delaware lawmakers have tried to stop with legislation.

In reviewing whether Musk had excessive control in being awarded that earlier remuneration deal, a noted academic expert observed that the judge acknowledged that other "celebrity leaders" like Meta's Mark Zuckerberg and Amazon's Jeff Bezos were not granted this kind of goal-oriented agreements.