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Tesla shareholders gathered this Thursday to vote on a substantial remuneration plan for CEO Elon Musk valued at close to $1 trillion. Should it pass, this deal would showcase market faith that the billionaire can guide the automaker into an period shaped by artificial intelligence and robotics. Should it fail, Tesla could risk the departure of a visionary leader who once made the brand synonymous with zero-emission cars.

Record-Breaking Goals and Market Capitalization

If the CEO meets the ambitious objectives detailed in the compensation plan revealed at Tesla's shareholder gathering, he could emerge as the pioneering person with a trillion-dollar net worth. To accomplish this, he must guide Tesla to a monumental $8.5 trillion in market capitalization, which is eight times its existing market cap. Moreover, he will be required to deploy numerous driverless automobiles and advanced androids, while sustaining the company's bottom line in the hundreds of billions in the upcoming decade.

Payment Breakdown

The main goals of the compensation plan, split into twelve stages, chart a path for Tesla to reach its colossal valuation. Upon achievement, Musk would be able to realize gains on an additional 12% of the company's stock. For this to occur, he must maintain involvement with the company for a minimum of 7.5 years. Additionally, he must assist in creating a long-term succession plan for the business he has headed for more than 20 years. The stock options awarded by the latest pay package, alongside shares guaranteed in his earlier deal, would leave Musk with 25% ownership of Tesla's stock. In early November, Tesla shares were valued close to its annual peak, at approximately $450 per share.

Ambitious Targets

Throughout a ten years, Musk will be tasked to deliver 20 million EVs to consumers, market 10 million live FSD memberships, develop and sell 1 million advanced androids, and deploy 1 million autonomous taxis in commercial service.

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

In November, Musk's fortune was valued at $460 billion, the highest in the planet, according to wealth indexes.

Restoring a Rescinded Package

Investors are also reviewing a plan that would compensate Musk after his 2018 compensation plan was invalidated by a legal authority in Delaware. The pay plan, valued at around $56 billion, was contested by a sole shareholder who succeeded legally. The Delaware judicial system rejected Musk's pay package twice. If shareholders approve the proposal in the Thursday ballot, Musk is expected to be paid the huge sum regardless of if Tesla and Musk win an appeal of the legal matter.

Following Musk's previous compensation plan was initially invalidated, he transferred Tesla's corporate home out of Delaware and into Texas. He followed suit with his aerospace company and other business entities. In 2024, according to Texas regulations, shareholders again voted to approve the pay package.

But Delaware's often referred to as "court of equity" once again denied one of the most substantial CEO pay deals in modern history. After that adverse judgment, Musk took to social media to show frustration with the jurisdiction and its "prominent judicial figure", arguably fueling a number of company relocations that Delaware lawmakers have sought to curb with regulatory measures.

In considering whether Musk had undue influence in being granted that 2018 pay package, a respected academic expert observed that the court recognized that other "high-profile executives" like the Meta chief and Amazon's Jeff Bezos were not given this type of incentive-based contracts.