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Tesla shareholders assembled this Thursday to vote on a enormous pay deal for Chief Executive Elon Musk valued at close to $1 trillion. Upon approval, this plan would demonstrate shareholder trust that the tech magnate can guide the car company into an age shaped by AI technology and advanced machinery. If rejected, Tesla could confront the loss of a key figure who once made the corporation equivalent with EVs.

Historic Milestones and Market Capitalization

If the CEO meets the lofty objectives detailed in the compensation plan revealed at Tesla's corporate assembly, he could be crowned the world's first trillionaire. To accomplish this, he must guide Tesla to a monumental $8.5 trillion in market capitalization, which is eight times its existing market cap. Additionally, he will be obligated to roll out millions self-driving cars and humanoid robots, while sustaining the corporate profits in the massive revenue figures in the upcoming decade.

Payment Breakdown

The primary objectives of the remuneration structure, organized into twelve stages, chart a trajectory for Tesla to attain its colossal market capitalization. Upon achievement, Musk would be in a position to realize gains on an extra 12% of the firm's equity. To be eligible, he must maintain involvement with the firm for at least 7.5 years. Additionally, he must help develop a long-term succession plan for the enterprise he has led for over 20 years. The share grants provided by the latest pay package, in addition to shares promised in his 2018 package, would grant Musk with 25 percent equity of Tesla's stock. In early November, Tesla equity was priced close to its yearly maximum, at around $450 each share.

Ambitious Targets

Over the course of a decade, Musk will be tasked to manufacture 20 million zero-emission cars to consumers, market 10 million live FSD memberships, produce and launch 1 million bipedal machines, and launch 1 million robotaxis in commercial service.

Musk will furthermore be required to increase the firm to $400 billion in real profits for four consecutive quarters. Tesla's actual earnings for the July-September 2025 were $4.2 billion, down 9% from the same period last year.

In November, Musk's net worth was pegged at $460 billion, the leading in the world, based on financial data.

Reviving a Rescinded Deal

Shareholders are additionally considering a proposal that would remunerate Musk after his 2018 compensation plan was overturned by a judicial body in Delaware. The pay plan, estimated to be $56 billion, was challenged by a individual investor who prevailed in court. The Delaware court of chancery denied Musk's compensation plan twice. If shareholders approve the plan in the Thursday ballot, Musk is expected to be granted the huge sum whether or not Tesla and Musk overturn the ruling of the case.

Following Musk's 2018 pay package was initially invalidated, he moved Tesla's business registration to Texas from Delaware. He followed suit with his aerospace company and other business entities. In the previous year, according to Texas regulations, shareholders again voted to approve the pay package.

But Delaware's so-called "equity court" again ruled against one of the biggest CEO compensation packages in modern history. In the wake of that adverse judgment, Musk took to social media to voice displeasure with the jurisdiction and its "prominent judicial figure", arguably sparking a series of corporate exits that Delaware officials have tried to stop with legislation.

In considering whether Musk had undue influence in being given that earlier remuneration deal, a noted legal scholar commented that the judicial authority recognized that other "high-profile executives" like Meta's Mark Zuckerberg and the Amazon founder were not granted this kind of goal-oriented agreements.