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Investors in the electric car maker convened on Thursday to decide on a enormous compensation package for the company's leader estimated at nearly $1 trillion. Upon approval, this plan would demonstrate investor confidence that the entrepreneur can steer the car company into an era shaped by machine learning and robotics. If rejected, Tesla could confront the exit of a key figure who historically built the company name interchangeable with electric vehicles.

Record-Breaking Milestones and Market Capitalization

If the CEO meets the ambitious milestones outlined in the remuneration deal introduced at Tesla's annual meeting, he could emerge as the first-ever person with a trillion-dollar net worth. For this to happen, he must guide Tesla to a astronomical $8.5 trillion in market capitalization, which is 800% of its current valuation. Additionally, he will be obligated to launch countless autonomous vehicles and advanced androids, while maintaining the company's bottom line in the massive revenue figures over the next decade.

Reward System

The primary objectives of the compensation plan, organized into 12 tranches, chart a roadmap for Tesla to reach its massive market capitalization. Should targets be met, Musk would be eligible to realize gains on an additional 12% of the firm's equity. To qualify, he must remain vested with the company for no less than 7.5 years. Furthermore, he is required to help develop a future leadership strategy for the enterprise he has led for more than 20 years. The share grants awarded by the latest pay package, in addition to shares promised in his previous compensation plan, would result in Musk with a quarter stake of Tesla's equity. By the start of November, Tesla stock was trading close to its annual peak, at around $450 per share.

Lofty Goals

Throughout a ten years, Musk will be tasked to produce 20 million electric vehicles to buyers, sell 10 million live FSD memberships, create and distribute 1 million bipedal machines, and deploy 1 million robotaxis in commercial service.

Musk will also be obligated to elevate the corporation to $400 billion in real profits for a full year. Tesla's actual earnings for the Q3 2025 were $4.2 billion, down 9% from the same period last year.

As of November, Musk's fortune was pegged at $460 billion, the highest in the globe, based on financial data.

Reinstating a Revoked Package

Shareholders are also considering a arrangement that would remunerate Musk after his previous pay package was voided by a court in Delaware. The pay plan, estimated to be $56 billion, was contested by a individual investor who won his case. The Delaware judicial system dismissed Musk's remuneration deal on multiple instances. Should investors pass the proposal in Thursday's vote, Musk is likely to be granted the huge sum whether or not Tesla and Musk win an appeal of the lawsuit.

After Musk's 2018 pay package was first rescinded, he moved Tesla's business registration from Delaware to Texas. He followed suit with his aerospace company and other companies' headquarters. In last year, per Texas statutes, shareholders again passed the pay package.

But Delaware's so-called "court of equity" again rejected one of the biggest CEO compensation packages in modern history. After that adverse judgment, Musk took to social media to show frustration with the region and its "influential presiding justice", possibly fueling a wave of business departures that Delaware legislators have sought to curb with new laws.

In reviewing whether Musk had undue influence in being granted that previous compensation plan, a noted law professor observed that the judge acknowledged that other "high-profile executives" like Meta's Mark Zuckerberg and the Amazon founder were not given this kind of goal-oriented agreements.