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Investors in the electric car maker convened on Thursday to determine on a enormous pay deal for the company's leader estimated at close to $1 trillion. If approved, this deal would demonstrate market faith that the billionaire can steer the car company into an era shaped by artificial intelligence and advanced machinery. If denied, Tesla could potentially face the loss of a pioneering CEO who historically built the corporation equivalent with EVs.

Historic Targets and Market Capitalization

Upon reaching the formidable objectives outlined in the remuneration deal introduced at Tesla's corporate assembly, he could be crowned the world's first trillionaire. For this to happen, he must lead Tesla to a monumental $8.5 trillion in company worth, which is eight times its existing market cap. Moreover, he will be obligated to deploy numerous autonomous vehicles and humanoid robots, while upholding the corporate profits in the hundreds of billions of dollars over the next decade.

Compensation Structure

The key aims of the pay package, divided into a dozen phases, chart a trajectory for Tesla to reach its massive market capitalization. Upon achievement, Musk would be able to realize gains on an additional 12% of the company's stock. To be eligible, he must maintain involvement with the firm for a minimum of 7.5 years. Furthermore, he is required to contribute to forming a long-term succession plan for the business he has led for over 20 years. The share grants awarded by the new compensation plan, combined with shares assured in his previous compensation plan, would result in Musk with a quarter stake of Tesla's stock. In early November, Tesla shares were valued close to its annual peak, at approximately $450 per share.

Lofty Goals

Throughout a decade, Musk will be required to deliver 20 million zero-emission cars to customers, distribute 10 million live FSD memberships, produce and launch 1 million advanced androids, and deploy 1 million robotaxis in paid operations.

Musk will also be tasked to bring the company to $400 billion in actual earnings for a full year. Tesla's real profits for the July-September 2025 were $4.2 billion, down 9% from the year before.

In November, Musk's fortune was valued at $460 billion, the top in the world, according to market tracking.

Reinstating a Revoked Plan

Investors are additionally considering a plan that would remunerate Musk after his earlier remuneration deal was voided by a court in Delaware. The compensation package, worth an estimated $56 billion, was challenged by a single stockholder who prevailed in court. The state court dismissed Musk's pay package on two occasions. If shareholders approve the plan in Thursday's vote, Musk is set to be granted the massive amount whether or not Tesla and Musk succeed in appealing of the legal matter.

After Musk's earlier remuneration deal was initially invalidated, he moved Tesla's business registration from Delaware to Texas. He did the same with SpaceX and other business entities. In 2024, per Texas statutes, shareholders again voted to approve the pay package.

But Delaware's known as "equity court" for a second time denied one of the largest CEO compensation packages in modern history. After that adverse judgment, Musk took to social media to show frustration with the jurisdiction and its "activist chief judge", possibly fueling a wave of business departures that Delaware legislators have sought to curb with legislation.

In evaluating whether Musk had excessive control in being granted that 2018 pay package, a noted academic expert commented 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 goal-oriented agreements.