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Investors in the electric car maker convened on Thursday to vote on a massive compensation package for Chief Executive Elon Musk estimated at around $1 trillion. If approved, this deal would demonstrate market faith that the billionaire can steer the vehicle manufacturer into an age dominated by machine learning and automation. If denied, Tesla could confront the loss of a pioneering CEO who previously established the corporation equivalent with EVs.

Record-Breaking Targets and Market Capitalization

Should Musk achieve the formidable milestones specified in the compensation plan presented at Tesla's corporate assembly, he could be crowned the first-ever trillionaire. To accomplish this, he must steer Tesla to a astronomical $8.5 trillion in market capitalization, which is an eightfold increase its present worth. Moreover, he will be tasked to launch countless driverless automobiles and bipedal machines, while sustaining the corporate profits in the hundreds of billions over the next decade.

Compensation Structure

The key aims of the compensation plan, organized into a dozen phases, chart a roadmap for Tesla to achieve its colossal market capitalization. If successful, Musk would be in a position to realize gains on an extra 12% of the company's stock. To qualify, he must maintain involvement with the company for at least 7.5 years. Additionally, he must help develop a long-term succession plan for the organization he has led for over 20 years. The equity incentives provided by the updated remuneration deal, in addition to shares guaranteed in his 2018 package, would grant Musk with 25% ownership of Tesla's equity. By the start of November, Tesla equity was priced near its yearly maximum, at roughly $450 each share.

Formidable Objectives

Throughout a ten years, Musk will be tasked to deliver 20 million zero-emission cars to customers, distribute 10 million live FSD memberships, develop and sell 1 million humanoid robots, and deploy 1 million robotaxis in revenue-generating use.

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

By November, Musk's fortune was pegged at $460 billion, the leading in the world, according to market tracking.

Reviving a Rescinded Deal

Investors are also evaluating a arrangement that would compensate Musk after his previous pay package was voided by a court in Delaware. The remuneration deal, estimated to be $56 billion, was contested by a individual investor who succeeded legally. The Delaware court of chancery denied Musk's remuneration deal on two occasions. Should investors pass the arrangement in Thursday's vote, Musk is likely to be awarded the huge sum whether or not Tesla and Musk overturn the ruling of the case.

Following Musk's previous compensation plan was originally overturned, he moved Tesla's corporate home to Texas from Delaware. He repeated the action with the rocket firm and other companies' headquarters. In the previous year, per Texas statutes, shareholders once again approved the pay package.

But Delaware's known as "equity court" for a second time denied one of the most substantial CEO compensation packages in recent times. After that negative decision, Musk posted on his accounts to express dissatisfaction with the region and its "prominent judicial figure", possibly igniting a wave of business departures that Delaware legislators have tried to stop with new laws.

In reviewing whether Musk had excessive control in being given that previous compensation plan, a respected law professor observed that the judicial authority recognized that other "high-profile executives" like Meta's Mark Zuckerberg and the Amazon founder were not awarded this sort of performance-linked deals.