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Tesla shareholders convened this Thursday to decide on a substantial compensation package for CEO Elon Musk worth approximately around $1 trillion. If approved, this package would signal market faith that the billionaire can lead the car company into an age defined by artificial intelligence and automation. If denied, Tesla could potentially face the departure of a visionary leader who once made the company name interchangeable with EVs.

Historic Targets and Company Valuation

Should Musk achieve the ambitious milestones specified in the remuneration deal revealed at Tesla's annual meeting, he could be crowned the world's first trillionaire. For this to happen, he must lead Tesla to a monumental $8.5 trillion in market value, which is eight times its current valuation. Furthermore, he will be tasked to roll out countless autonomous vehicles and advanced androids, while maintaining the financial performance in the massive revenue figures throughout the coming ten years.

Payment Breakdown

The main goals of the remuneration structure, divided into twelve stages, chart a path for Tesla to reach its massive market capitalization. Upon achievement, Musk would be able to realize gains on an additional 12% of the corporation's shares. To be eligible, he must stay committed with the company for at least 7.5 years. Additionally, he must assist in creating a corporate transition roadmap for the business he has led for over 20 years. The share grants offered by the latest pay package, in addition to shares assured in his 2018 package, would leave Musk with 25% ownership of Tesla's stock. As of early November, Tesla stock was trading near its yearly maximum, at around $450 per stock.

Lofty Goals

Over the course of a decade, Musk will be required to manufacture 20 million zero-emission cars to customers, market 10 million live FSD memberships, produce and launch 1 million advanced androids, and deploy 1 million robotaxis in paid operations.

Musk will also be required to bring the company to $400 billion in actual earnings for four straight quarters. Tesla's actual earnings for the third quarter of 2025 were $4.2 billion, a 9% decrease from the year before.

By November, Musk's fortune was estimated at $460 billion, the leading in the world, as reported by wealth indexes.

Reviving a Revoked Package

Investors are also reviewing a proposal that would compensate Musk after his 2018 compensation plan was invalidated by a legal authority in Delaware. The pay plan, worth an estimated $56 billion, was disputed by a individual investor who won his case. The state court denied Musk's pay package on multiple instances. Upon stockholder approval the plan in Thursday's vote, Musk is likely to be awarded the substantial payout whether or not Tesla and Musk succeed in appealing of the legal matter.

Following Musk's previous compensation plan was initially invalidated, he moved Tesla's legal headquarters out of Delaware and into Texas. He repeated the action with SpaceX and other companies' headquarters. In the previous year, according to Texas regulations, shareholders once again passed the remuneration deal.

But Delaware's so-called "judicial body" for a second time denied one of the most substantial CEO pay deals in recent times. Following that negative decision, Musk used online platforms to express dissatisfaction with the jurisdiction and its "influential presiding justice", arguably fueling a wave of business departures that Delaware officials have tried to stop with legislation.

In reviewing whether Musk had undue influence in being awarded that 2018 pay package, a noted legal scholar observed that the judge acknowledged that other "superstar CEOs" like Facebook's founder and the e-commerce pioneer were not given this type of incentive-based contracts.