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Investors in the electric car maker convened on Thursday to decide on a massive compensation package for CEO Elon Musk valued at close to $1 trillion. Upon approval, this package would showcase market faith that the tech magnate can steer the automaker into an period dominated by AI technology and automation. If denied, Tesla could potentially face the exit of a key figure who historically built the company name synonymous with zero-emission cars.

Historic Milestones and Market Capitalization

If the CEO meets the formidable objectives specified in the remuneration deal revealed at Tesla's corporate assembly, he could become the world's first person with a trillion-dollar net worth. For this to happen, he must steer Tesla to a monumental $8.5 trillion in market value, which is an eightfold increase its existing market cap. Furthermore, he will be tasked to roll out numerous driverless automobiles and humanoid robots, while sustaining the financial performance in the massive revenue figures throughout the coming ten years.

Payment Breakdown

The main goals of the remuneration structure, split into twelve stages, delineate a path for Tesla to achieve its massive worth. Should targets be met, Musk would be able to realize gains on an additional 12% of the firm's equity. For this to occur, he must stay committed with the company for at least 7.5 years. Furthermore, he is required to assist in creating a future leadership strategy for the business he has managed for in excess of 20 years. The share grants offered by the latest pay package, in addition to shares promised in his 2018 package, would grant Musk with a quarter stake of Tesla's equity. In early November, Tesla shares were valued close to its annual peak, at roughly $450 per share.

Lofty Goals

During a decade, Musk will be tasked to manufacture 20 million electric vehicles to consumers, distribute 10 million operational autonomous driving plans, produce and launch 1 million advanced androids, and introduce 1 million robotaxis in paid operations.

Musk will furthermore be required to bring the company to $400 billion in real profits for a full year. Tesla's real profits for the July-September 2025 were $4.2 billion, 9 percent lower from the year before.

By November, Musk's net worth was pegged at $460 billion, the leading in the globe, as reported by wealth indexes.

Restoring a Rescinded Deal

Investors are furthermore evaluating a proposal that would compensate Musk after his earlier remuneration deal was overturned by a court in Delaware. The remuneration deal, valued at around $56 billion, was challenged by a sole shareholder who won his case. The Delaware court of chancery dismissed Musk's pay package on multiple instances. If shareholders approve the plan in the Thursday ballot, Musk is set to be granted the huge sum regardless of if Tesla and Musk succeed in appealing of the legal matter.

After Musk's previous compensation plan was first rescinded, he relocated Tesla's legal headquarters out of Delaware and into Texas. He followed suit with his aerospace company and other companies' headquarters. In 2024, according to Texas regulations, shareholders for a second time passed the pay package.

But Delaware's so-called "judicial body" for a second time ruled against one of the largest CEO pay deals in modern history. In the wake of that unfavorable ruling, Musk used online platforms to voice displeasure with the region and its "activist chief judge", arguably igniting a number of company relocations that Delaware lawmakers have attempted to staunch with new laws.

In reviewing whether Musk had undue influence in being granted that previous compensation plan, a respected academic expert commented that the judge acknowledged that other "celebrity leaders" like the Meta chief and the Amazon founder were not granted this type of incentive-based contracts.