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Investors in the electric car maker convened on Thursday to decide on a enormous pay deal for the company's leader valued at close to $1 trillion. Should it pass, this package would showcase shareholder trust that the billionaire can guide the vehicle manufacturer into an era defined by machine learning and automation. Should it fail, Tesla could potentially face the exit of a key figure who once made the corporation synonymous with EVs.

Record-Breaking Goals and Market Capitalization

Upon reaching the lofty milestones outlined in the pay package revealed at Tesla's shareholder gathering, he could become the world's first person with a trillion-dollar net worth. To reach this goal, he must steer Tesla to a astronomical $8.5 trillion in market capitalization, which is 800% of its existing market cap. Furthermore, he will be tasked to launch countless self-driving cars and bipedal machines, while upholding the financial performance in the hundreds of billions over the next decade.

Payment Breakdown

The key aims of the pay package, divided into twelve stages, outline a trajectory for Tesla to reach its massive valuation. Upon achievement, Musk would be able to benefit from an extra 12% of the firm's equity. To qualify, he must stay committed with the corporation for a minimum of 7.5 years. Additionally, he must help develop a long-term succession plan for the enterprise he has led for more than 20 years. The equity incentives awarded by the updated remuneration deal, combined with shares promised in his 2018 package, would leave Musk with a quarter stake of Tesla's equity. By the start of November, Tesla shares were valued approaching its annual peak, at approximately $450 per stock.

Ambitious Targets

Over the course of a ten years, Musk will be obligated to manufacture 20 million EVs to customers, market 10 million active full self-driving subscriptions, develop and sell 1 million advanced androids, and launch 1 million self-driving cabs in commercial service.

Musk will additionally be required to elevate the company to $400 billion in real profits for four consecutive quarters. Tesla's tangible revenue for the Q3 2025 were $4.2 billion, down 9% from the previous year.

As of November, Musk's net worth was estimated at $460 billion, the highest in the world, as reported by market tracking.

Restoring a Revoked Plan

Investors are additionally reviewing a plan that would compensate Musk after his 2018 compensation plan was overturned by a court in Delaware. The remuneration deal, worth an estimated $56 billion, was contested by a single stockholder who succeeded legally. The Delaware judicial system dismissed Musk's remuneration deal twice. If shareholders approve the plan in Thursday's vote, Musk is expected to be paid the huge sum whether or not Tesla and Musk win an appeal of the case.

Following Musk's previous compensation plan was initially invalidated, he transferred Tesla's business registration from Delaware to Texas. He repeated the action with SpaceX and other companies' headquarters. In the previous year, per Texas statutes, shareholders once again passed the compensation plan.

But Delaware's often referred to as "equity court" for a second time ruled against one of the most substantial CEO compensation packages in modern history. In the wake of that unfavorable ruling, Musk used online platforms to show frustration with the state and its "prominent judicial figure", perhaps fueling a wave of business departures that Delaware lawmakers have sought to curb with legislation.

In reviewing whether Musk had undue influence in being awarded that 2018 pay package, a respected academic expert commented that the judicial authority noted that other "celebrity leaders" like the Meta chief and the e-commerce pioneer were not granted this sort of goal-oriented agreements.