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Investors in the electric car maker gathered this Thursday to determine on a massive compensation package for CEO Elon Musk valued at around $1 trillion. Should it pass, this package would demonstrate market faith that the entrepreneur can guide the car company into an period shaped by machine learning and advanced machinery. If denied, Tesla could confront the exit of a key figure who previously established the corporation equivalent with EVs.

Historic Goals and Company Valuation

If the CEO meets the lofty objectives specified in the compensation plan presented at Tesla's corporate assembly, he could emerge as the world's first person with a trillion-dollar net worth. To accomplish this, he must steer Tesla to a staggering $8.5 trillion in market capitalization, which is an eightfold increase its existing market cap. Moreover, he will be obligated to deploy millions self-driving cars and humanoid robots, while maintaining the financial performance in the massive revenue figures throughout the coming ten years.

Payment Breakdown

The primary objectives of the pay package, organized into 12 tranches, outline a roadmap for Tesla to achieve its colossal valuation. Upon achievement, Musk would be able to realize gains on an further 12% of the company's stock. To be eligible, he must remain vested with the corporation for a minimum of 7.5 years. He will also assist in creating a corporate transition roadmap for the business he has managed for over 20 years. The share grants awarded by the new compensation plan, in addition to shares assured in his 2018 package, would grant Musk with 25% ownership of Tesla's stock. As of early November, Tesla equity was priced near its annual peak, at around $450 each share.

Ambitious Targets

Over the course of a ten-year period, Musk will be obligated to deliver 20 million EVs to consumers, sell 10 million live FSD memberships, produce and launch 1 million humanoid robots, and launch 1 million robotaxis in commercial service.

Musk will furthermore be tasked to bring the company to $400 billion in actual earnings for four consecutive quarters. Tesla's tangible revenue for the Q3 2025 were $4.2 billion, 9 percent lower from the year before.

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

Reinstating a Revoked Deal

Shareholders are also evaluating a arrangement that would compensate Musk after his 2018 compensation plan was overturned by a legal authority in Delaware. The compensation package, valued at around $56 billion, was disputed by a single stockholder who succeeded legally. The Delaware court of chancery denied Musk's compensation plan on two occasions. Should investors pass the arrangement in the shareholder meeting, Musk is expected to be awarded the massive amount regardless of if Tesla and Musk win an appeal of the lawsuit.

After Musk's earlier remuneration deal was initially invalidated, he transferred Tesla's corporate home out of Delaware and into Texas. He did the same with the rocket firm and other business entities. In the previous year, under Texas law, shareholders for a second time passed the pay package.

But Delaware's known as "judicial body" for a second time denied one of the most substantial CEO pay deals in recent times. After that unfavorable ruling, Musk took to social media to express dissatisfaction with the jurisdiction and its "prominent judicial figure", possibly sparking a series of corporate exits that Delaware officials have tried to stop with new laws.

In considering whether Musk had undue influence in being awarded that earlier remuneration deal, a noted law professor remarked that the court recognized that other "superstar CEOs" like Meta's Mark Zuckerberg and the Amazon founder were not awarded this sort of performance-linked deals.