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Tesla shareholders gathered this Thursday to vote on a massive compensation package for the company's leader valued at nearly $1 trillion. If approved, this plan would showcase market faith that the tech magnate can lead the car company into an age shaped by artificial intelligence and automation. Should it fail, Tesla could potentially face the loss of a key figure who historically built the brand equivalent with EVs.

Record-Breaking Goals and Market Capitalization

Upon reaching the lofty targets outlined in the compensation plan revealed at Tesla's corporate assembly, he could emerge as the first-ever trillionaire. To accomplish this, he must lead Tesla to a monumental $8.5 trillion in market capitalization, which is 800% of its current valuation. Furthermore, he will be tasked to roll out countless self-driving cars and bipedal machines, while sustaining the financial performance in the massive revenue figures throughout the coming ten years.

Compensation Structure

The main goals of the pay package, organized into 12 tranches, outline a path for Tesla to reach its enormous market capitalization. Upon achievement, Musk would be able to benefit from an extra 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 future leadership strategy for the enterprise he has headed for in excess of 20 years. The stock options provided by the updated remuneration deal, combined with shares assured in his 2018 package, would result in Musk with a quarter stake of Tesla's equity. In early November, Tesla stock was trading near its annual peak, at around $450 each share.

Lofty Goals

During a ten years, Musk will be tasked to manufacture 20 million EVs to consumers, distribute 10 million live FSD memberships, produce and launch 1 million advanced androids, and deploy 1 million robotaxis in commercial service.

Musk will additionally be tasked to elevate the firm to $400 billion in tangible revenue for four straight quarters. Tesla's real profits for the third quarter of 2025 were $4.2 billion, 9 percent lower from the same period last year.

As of November, Musk's fortune was estimated at $460 billion, the highest in the world, according to wealth indexes.

Restoring a Rescinded Deal

Shareholders are also reviewing a proposal that would compensate Musk after his earlier remuneration deal was voided by a judicial body in Delaware. The remuneration deal, estimated to be $56 billion, was challenged by a individual investor who prevailed in court. The Delaware judicial system denied Musk's pay package twice. If shareholders approve the proposal in Thursday's vote, Musk is set to be awarded the substantial payout irrespective of whether Tesla and Musk overturn the ruling of the case.

Following Musk's 2018 pay package was initially invalidated, he transferred Tesla's business registration from Delaware to Texas. He followed suit with his aerospace company and other companies' headquarters. In last year, under Texas law, shareholders for a second time voted to approve the compensation plan.

But Delaware's often referred to as "judicial body" again ruled against one of the most substantial CEO compensation packages in modern history. After that negative decision, Musk posted on his accounts to voice displeasure with the jurisdiction and its "activist chief judge", perhaps fueling a wave of business departures that Delaware officials have sought to curb with legislation.

In evaluating whether Musk had undue influence in being granted that earlier remuneration deal, a respected academic expert commented that the judge noted that other "superstar CEOs" like Meta's Mark Zuckerberg and Amazon's Jeff Bezos were not granted this sort of incentive-based contracts.