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Investors in the electric car maker gathered on Thursday to determine on a massive remuneration plan for Chief Executive Elon Musk valued at close to $1 trillion. Should it pass, this package would demonstrate market faith that the billionaire can guide the automaker into an era defined by machine learning and advanced machinery. If denied, Tesla could risk the departure of a key figure who once made the brand synonymous with EVs.

Record-Breaking Targets and Market Capitalization

Should Musk achieve the lofty milestones outlined in the remuneration deal presented at Tesla's shareholder gathering, he could emerge as the first-ever person with a trillion-dollar net worth. To reach this goal, he must lead Tesla to a monumental $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 humanoid robots, while maintaining the financial performance in the hundreds of billions of dollars in the upcoming decade.

Payment Breakdown

The key aims of the pay package, split into 12 tranches, outline a roadmap for Tesla to attain its colossal market capitalization. If successful, Musk would be able to benefit from an further 12% of the corporation's shares. To be eligible, he must remain vested with the company for a minimum of 7.5 years. Additionally, he must assist in creating a corporate transition roadmap for the enterprise he has headed for in excess of 20 years. The equity incentives awarded by the new compensation plan, combined with shares promised in his previous compensation plan, would leave Musk with a quarter stake of Tesla's equity. As of early November, Tesla shares were valued near its 52-week high, at approximately $450 per share.

Formidable Objectives

During a decade, Musk will be required to manufacture 20 million zero-emission cars to buyers, sell 10 million live FSD memberships, develop and sell 1 million advanced androids, and deploy 1 million autonomous taxis in commercial service.

Musk will additionally be obligated to elevate the company to $400 billion in tangible revenue for a full year. Tesla's tangible revenue for the Q3 2025 were $4.2 billion, a 9% decrease from the same period last year.

In November, Musk's net worth was pegged at $460 billion, the highest in the globe, as reported by market tracking.

Reviving a Rescinded Package

Investors are also considering a proposal that would compensate Musk after his previous pay package was voided by a legal authority in Delaware. The compensation package, valued at around $56 billion, was disputed by a individual investor who succeeded legally. The state court dismissed Musk's compensation plan twice. If shareholders approve the arrangement in Thursday's vote, Musk is likely to be paid the massive amount regardless of if Tesla and Musk win an appeal of the legal matter.

Subsequent to Musk's earlier remuneration deal was initially invalidated, he relocated Tesla's legal headquarters from Delaware to Texas. He did the same with his aerospace company and other business entities. In 2024, under Texas law, shareholders again voted to approve the compensation plan.

But Delaware's often referred to as "court of equity" again ruled against one of the largest CEO pay deals in modern history. Following that adverse judgment, Musk took to social media to show frustration with the jurisdiction and its "influential presiding justice", arguably fueling a series of corporate exits that Delaware officials have attempted to staunch with new laws.

In reviewing whether Musk had undue influence in being granted that 2018 pay package, a respected law professor observed that the judicial authority noted that other "celebrity leaders" like Facebook's founder and Amazon's Jeff Bezos were not granted this sort of incentive-based contracts.