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Tesla shareholders assembled on Thursday to decide on a enormous pay deal for the company's leader estimated at around $1 trillion. Should it pass, this plan would demonstrate market faith that the entrepreneur can steer the car company into an age shaped by AI technology and automation. If denied, Tesla could confront the departure of a visionary leader who previously established the company name interchangeable with electric vehicles.

Record-Breaking Targets and Market Capitalization

If the CEO meets the ambitious objectives outlined in the compensation plan introduced at Tesla's corporate assembly, he could emerge as the first-ever person with a trillion-dollar net worth. To accomplish this, he must steer Tesla to a staggering $8.5 trillion in market value, which is eight times its present worth. Moreover, he will be obligated to deploy numerous driverless automobiles and bipedal machines, while maintaining the company's bottom line in the hundreds of billions of dollars throughout the coming ten years.

Compensation Structure

The key aims of the pay package, divided into twelve stages, outline a trajectory for Tesla to achieve its enormous market capitalization. Upon achievement, Musk would be eligible to cash in an extra 12% of the firm's equity. To qualify, he must maintain involvement with the company for at least 7.5 years. Additionally, he must help develop a corporate transition roadmap for the enterprise he has headed for over 20 years. The share grants awarded by the latest pay package, in addition to shares promised in his earlier deal, would result in Musk with 25% ownership of Tesla's stock. By the start of November, Tesla stock was trading approaching its 52-week high, at approximately $450 per stock.

Ambitious Targets

Over the course of a decade, Musk will be tasked to produce 20 million EVs to customers, sell 10 million live FSD memberships, create and distribute 1 million humanoid robots, and introduce 1 million self-driving cabs in paid operations.

Musk will furthermore be tasked to elevate the corporation to $400 billion in tangible revenue for four straight quarters. Tesla's actual earnings for the third quarter of 2025 were $4.2 billion, 9 percent lower from the year before.

As of November, Musk's personal wealth was valued at $460 billion, the leading in the world, as reported by market tracking.

Reinstating a Revoked Plan

Shareholders are additionally reviewing a proposal that would reward Musk after his previous pay package was invalidated by a court in Delaware. The pay plan, estimated to be $56 billion, was challenged by a sole shareholder who won his case. The state court denied Musk's pay package on multiple instances. Should investors pass the plan in the shareholder meeting, Musk is expected to be awarded the huge sum irrespective of whether Tesla and Musk succeed in appealing of the case.

Following Musk's earlier remuneration deal was initially invalidated, he moved Tesla's business registration out of Delaware and into Texas. He did the same with his aerospace company and additional corporate bases. In the previous year, under Texas law, shareholders for a second time voted to approve the remuneration deal.

But Delaware's often referred to as "court of equity" for a second time ruled against one of the biggest CEO compensation packages in modern history. Following that unfavorable ruling, Musk took to social media to voice displeasure with the region and its "activist chief judge", perhaps sparking a number of company relocations that Delaware officials have tried to stop with new laws.

In reviewing whether Musk had improper sway in being given that earlier remuneration deal, a noted legal scholar commented that the court noted that other "high-profile executives" like Meta's Mark Zuckerberg and Amazon's Jeff Bezos were not given this type of performance-linked deals.