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Tesla shareholders gathered on Thursday to determine on a substantial compensation package for CEO Elon Musk estimated at around $1 trillion. Should it pass, this package would showcase market faith that the billionaire can steer the automaker into an period shaped by machine learning and automation. If rejected, Tesla could confront the departure of a key figure who historically built the company name synonymous with zero-emission cars.

Historic Targets and Market Capitalization

If the CEO meets the formidable milestones specified in the compensation plan presented at Tesla's shareholder gathering, he could be crowned the first-ever person with a trillion-dollar net worth. For this to happen, he must lead Tesla to a staggering $8.5 trillion in market capitalization, which is 800% of its existing market cap. Additionally, he will be tasked to roll out countless autonomous vehicles and advanced androids, while maintaining the financial performance in the hundreds of billions of dollars over the next decade.

Reward System

The main goals of the remuneration structure, split into 12 tranches, delineate a roadmap for Tesla to reach its colossal market capitalization. Upon achievement, Musk would be able to cash in an further 12% of the corporation's shares. To be eligible, he must stay committed with the firm for at least 7.5 years. He will also assist in creating a corporate transition roadmap for the organization he has headed for over 20 years. The stock options provided by the new compensation plan, combined with shares promised in his 2018 package, would result in Musk with a quarter stake of Tesla's shares. In early November, Tesla equity was priced near its annual peak, at around $450 per stock.

Formidable Objectives

Over the course of a ten years, Musk will be required to deliver 20 million electric vehicles to customers, sell 10 million live FSD memberships, produce and launch 1 million humanoid robots, and introduce 1 million autonomous taxis in revenue-generating use.

Musk will furthermore be required to bring the corporation to $400 billion in actual earnings for four consecutive quarters. Tesla's real profits for the third quarter of 2025 were $4.2 billion, 9 percent lower from the previous year.

By November, Musk's personal wealth was valued at $460 billion, the top in the world, according to financial data.

Reviving a Rescinded Deal

Shareholders are additionally considering a arrangement that would remunerate Musk after his 2018 compensation plan was invalidated by a judicial body in Delaware. The compensation package, valued at around $56 billion, was disputed by a individual investor who won his case. The Delaware judicial system dismissed Musk's compensation plan on multiple instances. Upon stockholder approval the plan in Thursday's vote, Musk is likely to be awarded the substantial payout irrespective of whether Tesla and Musk win an appeal of the case.

After Musk's previous compensation plan was originally overturned, he moved Tesla's corporate home to Texas from Delaware. He followed suit with his aerospace company and additional corporate bases. In last year, according to Texas regulations, shareholders again passed the compensation plan.

But Delaware's so-called "equity court" once again ruled against one of the largest CEO compensation packages in modern history. Following that negative decision, Musk posted on his accounts to show frustration with the state and its "prominent judicial figure", perhaps sparking a number of company relocations that Delaware lawmakers have attempted to staunch with legislation.

In reviewing whether Musk had improper sway in being awarded that 2018 pay package, a prominent legal scholar commented that the court acknowledged that other "high-profile executives" like Meta's Mark Zuckerberg and the e-commerce pioneer were not awarded this sort of performance-linked deals.