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Investors in the electric car maker gathered this Thursday to vote on a substantial remuneration plan for Chief Executive Elon Musk valued at around $1 trillion. If approved, this package would showcase market faith that the tech magnate can guide the car company into an era defined by artificial intelligence and advanced machinery. If rejected, Tesla could potentially face the exit of a key figure who previously established the company name equivalent with EVs.

Record-Breaking Goals and Company Valuation

Upon reaching the formidable milestones detailed in the compensation plan revealed at Tesla's shareholder gathering, he could emerge as the world's first person with a trillion-dollar net worth. To accomplish this, he must guide Tesla to a staggering $8.5 trillion in market capitalization, which is eight times its existing market cap. Moreover, he will be required to launch countless autonomous vehicles and humanoid robots, while upholding the financial performance in the massive revenue figures in the upcoming decade.

Payment Breakdown

The primary objectives of the pay package, organized into 12 tranches, outline a trajectory for Tesla to achieve its enormous market capitalization. Upon achievement, Musk would be able to cash in an extra 12% of the corporation's shares. To qualify, he must maintain involvement with the company for a minimum of 7.5 years. He will also contribute to forming a long-term succession plan for the organization he has managed for over 20 years. The share grants provided by the latest pay package, alongside shares assured in his previous compensation plan, would grant Musk with 25 percent equity of Tesla's stock. As of early November, Tesla stock was trading near its annual peak, at roughly $450 each share.

Formidable Objectives

Throughout a decade, Musk will be obligated to manufacture 20 million electric vehicles to buyers, market 10 million active full self-driving subscriptions, create and distribute 1 million advanced androids, and deploy 1 million autonomous taxis in paid operations.

Musk will furthermore be required to bring the corporation to $400 billion in actual earnings for four consecutive quarters. Tesla's real profits for the third quarter of 2025 were $4.2 billion, down 9% from the same period last year.

By November, Musk's fortune was valued at $460 billion, the top in the globe, based on financial data.

Reviving a Invalidated Package

Investors are additionally reviewing a plan 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 rejected Musk's compensation plan on multiple instances. Upon stockholder approval the proposal in the Thursday ballot, Musk is set to be paid the huge sum irrespective of whether Tesla and Musk win an appeal of the lawsuit.

After Musk's earlier remuneration deal was initially invalidated, he transferred Tesla's corporate home from Delaware to Texas. He followed suit with SpaceX and other companies' headquarters. In 2024, per Texas statutes, shareholders again voted to approve the remuneration deal.

But Delaware's often referred to as "judicial body" once again ruled against one of the biggest CEO compensation packages in modern history. In the wake of that unfavorable ruling, Musk posted on his accounts to voice displeasure with the jurisdiction and its "prominent judicial figure", possibly sparking a wave of business departures that Delaware lawmakers have sought to curb with legislation.

In evaluating whether Musk had undue influence in being given that earlier remuneration deal, a noted law professor remarked that the judicial authority noted that other "superstar CEOs" like the Meta chief and the e-commerce pioneer were not granted this type of goal-oriented agreements.