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Investors in the electric car maker convened this Thursday to determine on a substantial pay deal for CEO Elon Musk estimated at close to $1 trillion. Upon approval, this deal would demonstrate investor confidence that the tech magnate can lead the vehicle manufacturer into an period defined by machine learning and automation. Should it fail, Tesla could potentially face the departure of a key figure who historically built the corporation synonymous with zero-emission cars.

Record-Breaking Goals and Company Valuation

Upon reaching the lofty milestones specified in the remuneration deal revealed at Tesla's annual meeting, he could emerge as the world's first trillionaire. For this to happen, he must lead Tesla to a monumental $8.5 trillion in company worth, which is an eightfold increase its existing market cap. Additionally, he will be required to launch numerous self-driving cars and advanced androids, while maintaining the financial performance in the massive revenue figures over the next decade.

Reward System

The primary objectives of the pay package, split into 12 tranches, chart a path for Tesla to attain its massive market capitalization. Should targets be met, Musk would be eligible to benefit from an further 12% of the company's stock. For this to occur, he must maintain involvement with the company for no less than 7.5 years. He will also help develop a long-term succession plan for the business he has managed for over 20 years. The share grants awarded by the new compensation plan, combined with shares promised in his previous compensation plan, would grant Musk with a quarter stake of Tesla's equity. By the start of November, Tesla shares were valued approaching its 52-week high, at around $450 per share.

Lofty Goals

Over the course of a decade, Musk will be tasked to deliver 20 million zero-emission cars to customers, distribute 10 million active full self-driving subscriptions, create and distribute 1 million bipedal machines, and introduce 1 million robotaxis in commercial service.

Musk will additionally be tasked to elevate the corporation to $400 billion in tangible revenue for four straight quarters. Tesla's actual earnings for the third quarter of 2025 were $4.2 billion, down 9% from the previous year.

In November, Musk's fortune was pegged at $460 billion, the highest in the globe, according to financial data.

Reviving a Invalidated Deal

Stockholders are also evaluating a plan that would remunerate Musk after his 2018 compensation plan was overturned by a judicial body in Delaware. The pay plan, valued at around $56 billion, was contested by a sole shareholder who won his case. The Delaware court of chancery denied Musk's remuneration deal on multiple instances. If shareholders approve the arrangement in the Thursday ballot, Musk is set to be granted the massive amount whether or not Tesla and Musk win an appeal of the legal matter.

Following Musk's earlier remuneration deal was originally overturned, he relocated Tesla's corporate home out of Delaware and into Texas. He followed suit with SpaceX and other business entities. In 2024, under Texas law, shareholders again passed the compensation plan.

But Delaware's so-called "judicial body" once again denied one of the most substantial CEO payouts in recent times. In the wake of that negative decision, Musk posted on his accounts to express dissatisfaction with the state and its "prominent judicial figure", arguably fueling a series of corporate exits that Delaware legislators have sought to curb with regulatory measures.

In considering whether Musk had improper sway in being awarded that earlier remuneration deal, a noted academic expert remarked that the judge acknowledged that other "high-profile executives" like the Meta chief and the e-commerce pioneer were not given this kind of goal-oriented agreements.