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Tesla shareholders gathered on Thursday to vote on a enormous pay deal for Chief Executive Elon Musk worth approximately close to $1 trillion. Should it pass, this plan would showcase investor confidence that the tech magnate can lead the car company into an age defined by artificial intelligence and advanced machinery. If rejected, Tesla could potentially face the exit of a key figure who previously established the company name synonymous with zero-emission cars.

Historic Targets and Company Valuation

If the CEO meets the formidable targets detailed in the pay package presented 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 staggering $8.5 trillion in company worth, which is 800% of its present worth. Furthermore, he will be tasked to roll out numerous self-driving cars and bipedal machines, while upholding the corporate profits in the hundreds of billions over the next decade.

Reward System

The primary objectives of the pay package, split into a dozen phases, outline a path for Tesla to achieve its colossal market capitalization. Upon achievement, Musk would be eligible to cash in an additional 12% of the company's stock. To be eligible, he must remain vested with the corporation for a minimum of 7.5 years. Furthermore, he is required to help develop a long-term succession plan for the organization he has managed for over 20 years. The stock options provided by the latest pay package, in addition to shares promised in his previous compensation plan, would result in Musk with 25% ownership of Tesla's stock. By the start of November, Tesla equity was priced approaching its 52-week high, at approximately $450 each share.

Ambitious Targets

Throughout a decade, Musk will be tasked to manufacture 20 million EVs to consumers, market 10 million active full self-driving subscriptions, produce and launch 1 million advanced androids, and deploy 1 million self-driving cabs in commercial service.

Musk will also be obligated to increase the firm to $400 billion in tangible revenue for a full year. Tesla's actual earnings for the Q3 2025 were $4.2 billion, a 9% decrease from the year before.

As of November, Musk's net worth was pegged at $460 billion, the highest in the world, according to market tracking.

Reviving a Invalidated Deal

Stockholders are furthermore considering a proposal that would reward Musk after his previous pay package was voided by a judicial body in Delaware. The compensation package, valued at around $56 billion, was disputed by a single stockholder who won his case. The state court denied Musk's compensation plan on multiple instances. Upon stockholder approval the proposal in Thursday's vote, Musk is set to be paid the substantial payout regardless of if Tesla and Musk win an appeal of the case.

Subsequent to Musk's earlier remuneration deal was originally overturned, he transferred Tesla's legal headquarters from Delaware to Texas. He followed suit with his aerospace company and other business entities. In the previous year, under Texas law, shareholders once again passed the pay package.

But Delaware's often referred to as "equity court" once again ruled against one of the biggest CEO pay deals in modern history. In the wake of that adverse judgment, Musk used online platforms to express dissatisfaction with the state and its "activist chief judge", possibly fueling a wave of business departures that Delaware officials have attempted to staunch with regulatory measures.

In reviewing whether Musk had improper sway in being awarded that 2018 pay package, a prominent academic expert observed that the judicial authority acknowledged that other "high-profile executives" like Facebook's founder and the Amazon founder were not granted this kind of performance-linked deals.