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Investors in the electric car maker gathered this Thursday to vote on a massive compensation package for CEO Elon Musk estimated at nearly $1 trillion. Should it pass, this deal would signal market faith that the tech magnate can steer the car company into an period defined by AI technology and robotics. If denied, Tesla could risk the loss of a key figure who historically built the brand equivalent with electric vehicles.

Historic Milestones and Market Capitalization

Should Musk achieve the ambitious targets detailed in the compensation plan revealed at Tesla's shareholder gathering, he could be crowned the pioneering person with a trillion-dollar net worth. To accomplish this, he must steer Tesla to a astronomical $8.5 trillion in market capitalization, which is 800% of its existing market cap. Additionally, he will be obligated to deploy millions driverless automobiles and bipedal machines, while maintaining the corporate profits in the hundreds of billions of dollars in the upcoming decade.

Reward System

The primary objectives of the pay package, split into a dozen phases, outline a path for Tesla to achieve its colossal market capitalization. Upon achievement, Musk would be eligible to benefit from an additional 12% of the corporation's shares. To qualify, he must remain vested with the company for no less than 7.5 years. Additionally, he must help develop a long-term succession plan for the enterprise he has headed for more than 20 years. The share grants provided by the new compensation plan, combined with shares assured in his previous compensation plan, would leave Musk with 25% ownership of Tesla's equity. In early November, Tesla shares were valued close to its yearly maximum, at around $450 per share.

Formidable Objectives

Over the course of a ten-year period, Musk will be required to deliver 20 million EVs to customers, market 10 million live FSD memberships, produce and launch 1 million humanoid robots, and introduce 1 million robotaxis in paid operations.

Musk will also be obligated to increase the corporation to $400 billion in tangible revenue for four straight quarters. Tesla's real profits for the third quarter of 2025 were $4.2 billion, down 9% from the year before.

By November, Musk's personal wealth was pegged at $460 billion, the leading in the globe, according to wealth indexes.

Restoring a Rescinded Plan

Investors are furthermore evaluating a plan that would reward Musk after his previous pay package was voided by a court in Delaware. The pay plan, valued at around $56 billion, was challenged by a single stockholder who succeeded legally. The Delaware judicial system denied Musk's compensation plan on multiple instances. If shareholders approve the plan in Thursday's vote, Musk is expected to be paid the massive amount irrespective of whether Tesla and Musk overturn the ruling of the legal matter.

After Musk's previous compensation plan was first rescinded, he relocated Tesla's legal headquarters to Texas from Delaware. He repeated the action with his aerospace company and additional corporate bases. In the previous year, under Texas law, shareholders again passed the compensation plan.

But Delaware's so-called "court of equity" again rejected one of the largest CEO pay deals in contemporary business. Following that adverse judgment, Musk posted on his accounts to express dissatisfaction with the region and its "prominent judicial figure", perhaps fueling a wave of business departures that Delaware officials have attempted to staunch with new laws.

In reviewing whether Musk had excessive control in being given that earlier remuneration deal, a respected law professor remarked that the judge noted that other "celebrity leaders" like the Meta chief and the Amazon founder were not given this sort of goal-oriented agreements.