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Tesla shareholders gathered on Thursday to determine on a massive remuneration plan for CEO Elon Musk estimated at nearly $1 trillion. Should it pass, this plan would signal market faith that the tech magnate can guide the car company into an period dominated by artificial intelligence and robotics. Should it fail, Tesla could potentially face the exit of a pioneering CEO who once made the brand interchangeable with electric vehicles.

Historic Milestones and Market Capitalization

Should Musk achieve the lofty milestones outlined in the pay package introduced at Tesla's corporate assembly, he could become the world's first person with a trillion-dollar net worth. For this to happen, he must lead Tesla to a staggering $8.5 trillion in market value, which is 800% of its existing market cap. Furthermore, he will be obligated to roll out numerous driverless automobiles and bipedal machines, while maintaining the corporate profits in the hundreds of billions over the next decade.

Reward System

The key aims of the pay package, organized into 12 tranches, chart a roadmap for Tesla to attain its massive worth. If successful, Musk would be eligible to realize gains on an further 12% of the firm's equity. To qualify, he must stay committed with the corporation for no less than 7.5 years. He will also assist in creating a corporate transition roadmap for the enterprise he has headed for over 20 years. The equity incentives provided by the new compensation plan, combined with shares guaranteed in his 2018 package, would grant Musk with 25% ownership of Tesla's shares. In early November, Tesla stock was trading approaching its yearly maximum, at approximately $450 per stock.

Ambitious Targets

Throughout a ten years, Musk will be obligated to deliver 20 million EVs to customers, distribute 10 million live FSD memberships, develop and sell 1 million advanced androids, and launch 1 million self-driving cabs in revenue-generating use.

Musk will additionally be obligated to elevate the company to $400 billion in actual earnings for four consecutive quarters. Tesla's tangible revenue 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 pegged at $460 billion, the highest in the planet, according to financial data.

Restoring a Invalidated Deal

Shareholders are also considering a arrangement that would remunerate Musk after his earlier remuneration deal was overturned by a legal authority in Delaware. The remuneration deal, valued at around $56 billion, was contested by a sole shareholder who succeeded legally. The state court rejected Musk's pay package on multiple instances. Upon stockholder approval the proposal in the shareholder meeting, Musk is likely to be paid the massive amount irrespective of whether Tesla and Musk overturn the ruling of the case.

After Musk's previous compensation plan was originally overturned, he relocated Tesla's business registration out of Delaware and into Texas. He followed suit with his aerospace company and additional corporate bases. In 2024, under Texas law, shareholders for a second time passed the remuneration deal.

But Delaware's known as "judicial body" for a second time ruled against one of the largest CEO payouts in modern history. In the wake of that unfavorable ruling, Musk took to social media to express dissatisfaction with the jurisdiction and its "activist chief judge", arguably sparking a wave of business departures that Delaware officials have tried to stop with legislation.

In considering whether Musk had undue influence in being granted that previous compensation plan, a prominent academic expert remarked that the court recognized that other "celebrity leaders" like the Meta chief and Amazon's Jeff Bezos were not awarded this sort of incentive-based contracts.