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Tesla shareholders assembled this Thursday to vote on a massive pay deal for Chief Executive Elon Musk estimated at close to $1 trillion. Should it pass, this package would demonstrate shareholder trust that the tech magnate can lead the automaker into an period shaped by machine learning and automation. If rejected, Tesla could confront the loss of a key figure who previously established the company name interchangeable with EVs.

Record-Breaking Targets and Company Valuation

If the CEO meets the lofty targets outlined in the remuneration deal presented at Tesla's annual meeting, he could emerge as the first-ever trillionaire. For this to happen, he must lead Tesla to a astronomical $8.5 trillion in company worth, which is 800% of its existing market cap. Furthermore, he will be obligated to launch numerous autonomous vehicles and humanoid robots, while maintaining the corporate profits in the hundreds of billions throughout the coming ten years.

Compensation Structure

The key aims of the remuneration structure, divided into twelve stages, outline a trajectory for Tesla to attain its colossal worth. If successful, Musk would be in a position to cash in an further 12% of the company's stock. To be eligible, he must maintain involvement with the corporation for at least 7.5 years. Additionally, he must contribute to forming a future leadership strategy for the business he has managed for in excess of 20 years. The stock options awarded by the updated remuneration deal, alongside shares promised in his earlier deal, would result in Musk with 25% ownership of Tesla's equity. As of early November, Tesla shares were valued close to its annual peak, at around $450 each share.

Ambitious Targets

Throughout a ten-year period, Musk will be tasked to deliver 20 million zero-emission cars to customers, market 10 million live FSD memberships, produce and launch 1 million humanoid robots, and launch 1 million robotaxis in revenue-generating use.

Musk will furthermore be tasked to elevate the company to $400 billion in real profits for a full year. Tesla's tangible revenue for the Q3 2025 were $4.2 billion, 9 percent lower from the previous year.

As of November, Musk's net worth was pegged at $460 billion, the highest in the planet, based on market tracking.

Restoring a Revoked Package

Shareholders are also considering a proposal that would remunerate Musk after his 2018 compensation plan was invalidated by a judicial body in Delaware. The remuneration deal, valued at around $56 billion, was disputed by a sole shareholder who prevailed in court. The Delaware judicial system dismissed Musk's remuneration deal on two occasions. Should investors pass the arrangement in the shareholder meeting, Musk is set to be granted the huge sum whether or not Tesla and Musk win an appeal of the lawsuit.

Following Musk's 2018 pay package was initially invalidated, he transferred Tesla's legal headquarters to Texas from Delaware. He did the same with the rocket firm and other business entities. In the previous year, per Texas statutes, shareholders once again voted to approve the remuneration deal.

But Delaware's known as "equity court" again rejected one of the largest CEO pay deals in modern history. After that adverse judgment, Musk used online platforms to voice displeasure with the jurisdiction and its "influential presiding justice", possibly igniting a number of company relocations that Delaware legislators have tried to stop with legislation.

In evaluating whether Musk had excessive control in being given that previous compensation plan, a noted academic expert commented that the judge recognized that other "celebrity leaders" like Meta's Mark Zuckerberg and the Amazon founder were not granted this kind of goal-oriented agreements.