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Tesla shareholders gathered this Thursday to determine on a enormous remuneration plan for Chief Executive Elon Musk estimated at close to $1 trillion. Should it pass, this package would showcase market faith that the billionaire can guide the car company into an era shaped by machine learning and robotics. Should it fail, Tesla could risk the loss of a key figure who once made the brand equivalent with EVs.

Historic Goals and Market Capitalization

Should Musk achieve the ambitious milestones outlined in the compensation plan presented at Tesla's annual meeting, he could become the pioneering person with a trillion-dollar net worth. To reach this goal, he must guide Tesla to a astronomical $8.5 trillion in market value, which is eight times its existing market cap. Additionally, he will be tasked to roll out millions self-driving cars and advanced androids, while sustaining the financial performance in the hundreds of billions over the next decade.

Payment Breakdown

The primary objectives of the remuneration structure, organized into a dozen phases, outline a roadmap for Tesla to reach its enormous market capitalization. If successful, Musk would be in a position to cash in an further 12% of the company's stock. For this to occur, he must maintain involvement with the company for at least 7.5 years. Additionally, he must help develop a long-term succession plan for the enterprise he has managed for more than 20 years. The share grants offered by the latest pay package, combined with shares promised in his earlier deal, would result in Musk with 25% ownership of Tesla's equity. In early November, Tesla stock was trading approaching its yearly maximum, at roughly $450 each share.

Formidable Objectives

During a ten years, Musk will be tasked to manufacture 20 million EVs to buyers, sell 10 million live FSD memberships, produce and launch 1 million bipedal machines, and deploy 1 million self-driving cabs in paid operations.

Musk will additionally be tasked to elevate the company to $400 billion in real profits for four consecutive quarters. Tesla's real profits for the third quarter of 2025 were $4.2 billion, a 9% decrease from the same period last year.

As of November, Musk's personal wealth was estimated at $460 billion, the highest in the planet, according to market tracking.

Reviving a Revoked Deal

Stockholders are also evaluating a plan that would compensate Musk after his previous pay package was invalidated by a court in Delaware. The compensation package, worth an estimated $56 billion, was contested by a individual investor who prevailed in court. The state court rejected Musk's pay package on two occasions. Upon stockholder approval the arrangement in the shareholder meeting, Musk is likely to be granted the huge sum whether or not Tesla and Musk succeed in appealing of the legal matter.

After Musk's earlier remuneration deal was first rescinded, he transferred Tesla's business registration out of Delaware and into Texas. He did the same with SpaceX and additional corporate bases. In 2024, according to Texas regulations, shareholders once again approved the remuneration deal.

But Delaware's known as "equity court" once again ruled against one of the most substantial CEO pay deals in contemporary business. In the wake of that negative decision, Musk posted on his accounts to voice displeasure with the jurisdiction and its "influential presiding justice", possibly sparking a series of corporate exits that Delaware legislators have sought to curb with regulatory measures.

In considering whether Musk had undue influence in being granted that 2018 pay package, a noted law professor observed that the judge noted that other "celebrity leaders" like Meta's Mark Zuckerberg and the e-commerce pioneer were not awarded this sort of performance-linked deals.