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Investors in the electric car maker gathered on Thursday to vote on a massive pay deal for CEO Elon Musk worth approximately close to $1 trillion. Should it pass, this deal would signal investor confidence that the tech magnate can lead the car company into an period dominated by AI technology and advanced machinery. If denied, Tesla could potentially face the exit of a pioneering CEO who once made the company name interchangeable with electric vehicles.

Historic Milestones and Company Valuation

Upon reaching the formidable objectives detailed in the pay package revealed at Tesla's shareholder gathering, he could become the world's first trillionaire. For this to happen, he must guide Tesla to a monumental $8.5 trillion in company worth, which is eight times its existing market cap. Furthermore, he will be obligated to roll out millions self-driving cars and humanoid robots, while upholding the company's bottom line in the hundreds of billions of dollars over the next decade.

Compensation Structure

The key aims of the pay package, divided into 12 tranches, outline a trajectory for Tesla to reach its enormous worth. Should targets be met, Musk would be eligible to realize gains on an further 12% of the company's stock. To be eligible, he must remain vested with the firm for at least 7.5 years. Additionally, he must assist in creating a long-term succession plan for the business he has led for over 20 years. The stock options provided by the updated remuneration deal, in addition to shares assured in his previous compensation plan, would grant Musk with 25% ownership of Tesla's stock. As of early November, Tesla equity was priced close to its annual peak, at roughly $450 per stock.

Lofty Goals

During a decade, Musk will be tasked to manufacture 20 million zero-emission cars to consumers, distribute 10 million live FSD memberships, produce and launch 1 million bipedal machines, and introduce 1 million robotaxis in revenue-generating use.

Musk will furthermore be tasked to increase the company to $400 billion in tangible revenue for four straight quarters. Tesla's tangible revenue for the third quarter of 2025 were $4.2 billion, a 9% decrease from the previous year.

As of November, Musk's net worth was valued at $460 billion, the top in the world, based on financial data.

Restoring a Invalidated Plan

Stockholders are additionally reviewing a proposal that would remunerate Musk after his previous pay package was overturned by a legal authority in Delaware. The pay plan, estimated to be $56 billion, was challenged by a single stockholder who succeeded legally. The Delaware court of chancery denied Musk's pay package on multiple instances. Should investors pass the arrangement in the Thursday ballot, Musk is set to be granted the huge sum whether or not Tesla and Musk succeed in appealing of the lawsuit.

After Musk's 2018 pay package was first rescinded, he relocated Tesla's corporate home to Texas from Delaware. He did the same with his aerospace company and additional corporate bases. In 2024, under Texas law, shareholders for a second time voted to approve the compensation plan.

But Delaware's known as "court of equity" once again rejected one of the biggest CEO pay deals in recent times. Following that unfavorable ruling, Musk posted on his accounts to voice displeasure with the state and its "activist chief judge", perhaps igniting a number of company relocations that Delaware lawmakers have tried to stop with legislation.

In considering whether Musk had excessive control in being awarded that previous compensation plan, a prominent academic expert remarked that the judge noted that other "high-profile executives" like Meta's Mark Zuckerberg and the e-commerce pioneer were not given this kind of performance-linked deals.