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Tesla shareholders assembled on Thursday to decide on a massive pay deal for the company's leader worth approximately close to $1 trillion. Should it pass, this package would showcase market faith that the entrepreneur can steer the vehicle manufacturer into an era dominated by artificial intelligence and automation. Should it fail, Tesla could risk the departure of a pioneering CEO who previously established the corporation equivalent with EVs.

Record-Breaking Milestones and Market Capitalization

Upon reaching the lofty targets specified in the pay package revealed at Tesla's shareholder gathering, he could become the first-ever trillionaire. For this to happen, he must lead Tesla to a monumental $8.5 trillion in market capitalization, which is an eightfold increase its existing market cap. Furthermore, he will be tasked to roll out millions autonomous vehicles and humanoid robots, while sustaining the corporate profits in the hundreds of billions over the next decade.

Reward System

The main goals of the compensation plan, divided into a dozen phases, chart a trajectory for Tesla to attain its colossal worth. Upon achievement, Musk would be eligible to realize gains on an extra 12% of the company's stock. For this to occur, he must maintain involvement with the company for no less than 7.5 years. Additionally, he must help develop a future leadership strategy for the enterprise he has headed for over 20 years. The share grants awarded by the new compensation plan, combined with shares guaranteed in his earlier deal, would result in Musk with 25 percent equity of Tesla's stock. As of early November, Tesla shares were valued near its annual peak, at roughly $450 per share.

Formidable Objectives

During a ten years, Musk will be tasked to produce 20 million electric vehicles to consumers, sell 10 million active full self-driving subscriptions, develop and sell 1 million humanoid robots, and deploy 1 million robotaxis in paid operations.

Musk will also be required to increase the firm to $400 billion in real profits for a full year. Tesla's tangible revenue for the third quarter of 2025 were $4.2 billion, 9 percent lower from the same period last year.

In November, Musk's fortune was estimated at $460 billion, the top in the planet, as reported by financial data.

Restoring a Revoked Deal

Shareholders are additionally evaluating a arrangement that would reward Musk after his previous pay package was voided by a legal authority in Delaware. The remuneration deal, valued at around $56 billion, was challenged by a individual investor who won his case. The Delaware judicial system denied Musk's remuneration deal on multiple instances. If shareholders approve the arrangement in the Thursday ballot, Musk is expected to be awarded the substantial payout regardless of if Tesla and Musk succeed in appealing of the case.

After Musk's 2018 pay package was first rescinded, he relocated Tesla's business registration to Texas from Delaware. He followed suit with SpaceX and other companies' headquarters. In 2024, under Texas law, shareholders for a second time approved the remuneration deal.

But Delaware's often referred to as "judicial body" again denied one of the biggest CEO compensation packages in modern history. Following that negative decision, Musk took to social media to voice displeasure with the state and its "prominent judicial figure", arguably sparking a wave of business departures that Delaware lawmakers have tried to stop with legislation.

In considering whether Musk had improper sway in being given that earlier remuneration deal, a prominent legal scholar observed that the judge noted that other "celebrity leaders" like Meta's Mark Zuckerberg and the e-commerce pioneer were not given this type of incentive-based contracts.