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Tesla shareholders convened on Thursday to decide on a enormous pay deal for CEO Elon Musk worth approximately nearly $1 trillion. Upon approval, this package would signal market faith that the entrepreneur can guide the car company into an era dominated by artificial intelligence and automation. If denied, Tesla could risk the loss of a pioneering CEO who previously established the brand equivalent with zero-emission cars.

Record-Breaking Milestones and Market Capitalization

Upon reaching the formidable milestones detailed in the compensation plan presented at Tesla's corporate assembly, he could become the first-ever person with a trillion-dollar net worth. For this to happen, he must guide Tesla to a monumental $8.5 trillion in market capitalization, which is eight times its current valuation. Furthermore, he will be tasked to roll out millions autonomous vehicles and advanced androids, while upholding the financial performance in the massive revenue figures throughout the coming ten years.

Reward System

The main goals of the remuneration structure, split into a dozen phases, outline a path for Tesla to attain its colossal market capitalization. Should targets be met, Musk would be eligible to realize gains on an further 12% of the corporation's shares. To be eligible, he must stay committed with the company for a minimum of 7.5 years. He will also assist in creating a long-term succession plan for the business he has managed for over 20 years. The share grants provided by the updated remuneration deal, alongside shares assured in his previous compensation plan, would leave Musk with 25 percent equity of Tesla's equity. In early November, Tesla equity was priced near its 52-week high, at approximately $450 per share.

Ambitious Targets

During a ten-year period, Musk will be required to produce 20 million electric vehicles to consumers, sell 10 million active full self-driving subscriptions, develop and sell 1 million advanced androids, and introduce 1 million self-driving cabs in commercial service.

Musk will additionally be required to bring the corporation to $400 billion in real profits for four straight quarters. Tesla's tangible revenue for the third quarter of 2025 were $4.2 billion, down 9% from the previous year.

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

Reviving a Invalidated Deal

Stockholders are also considering a proposal that would reward Musk after his 2018 compensation plan was voided by a judicial body in Delaware. The pay plan, estimated to be $56 billion, was contested by a individual investor who won his case. The state court rejected Musk's compensation plan twice. Should investors pass the arrangement in the Thursday ballot, Musk is expected to be granted the substantial payout regardless of if Tesla and Musk succeed in appealing of the case.

Subsequent to Musk's earlier remuneration deal was initially invalidated, he transferred Tesla's legal headquarters from Delaware to Texas. He followed suit with SpaceX and other business entities. In last year, under Texas law, shareholders once again passed the compensation plan.

But Delaware's often referred to as "court of equity" again ruled against one of the most substantial CEO compensation packages in contemporary business. In the wake of that negative decision, Musk posted on his accounts to show frustration with the jurisdiction and its "influential presiding justice", possibly sparking a wave of business departures that Delaware lawmakers have sought to curb with legislation.

In reviewing whether Musk had excessive control in being given that previous compensation plan, a respected legal scholar remarked that the judicial authority noted that other "high-profile executives" like Meta's Mark Zuckerberg and the Amazon founder were not given this kind of performance-linked deals.