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Tesla shareholders gathered on Thursday to determine on a substantial pay deal for the company's leader estimated at close to $1 trillion. If approved, this deal would signal shareholder trust that the billionaire can steer the automaker into an era shaped by artificial intelligence and robotics. Should it fail, Tesla could confront the departure of a key figure who once made the brand interchangeable with electric vehicles.

Record-Breaking Milestones and Company Valuation

Upon reaching the ambitious targets outlined in the compensation plan revealed at Tesla's annual meeting, he could be crowned the first-ever trillionaire. To accomplish this, he must steer Tesla to a staggering $8.5 trillion in market value, which is 800% of its present worth. Additionally, he will be required to roll out countless self-driving cars and advanced androids, while upholding the financial performance in the hundreds of billions of dollars in the upcoming decade.

Reward System

The primary objectives of the compensation plan, divided into 12 tranches, chart a trajectory for Tesla to reach its massive market capitalization. Should targets be met, Musk would be able to benefit from an further 12% of the company's stock. To qualify, he must stay committed with the firm for no less than 7.5 years. Additionally, he must assist in creating a long-term succession plan for the enterprise he has headed for more than 20 years. The stock options awarded by the updated remuneration deal, alongside shares promised in his 2018 package, would result in Musk with a quarter stake of Tesla's equity. In early November, Tesla stock was trading close to its 52-week high, at around $450 each share.

Lofty Goals

During a ten years, Musk will be required to deliver 20 million electric vehicles to buyers, distribute 10 million active full self-driving subscriptions, produce and launch 1 million bipedal machines, and deploy 1 million robotaxis in commercial service.

Musk will furthermore be required to elevate the company to $400 billion in tangible revenue for four straight quarters. Tesla's real profits for the third quarter of 2025 were $4.2 billion, 9 percent lower from the year before.

In November, Musk's net worth was pegged at $460 billion, the highest in the world, as reported by financial data.

Restoring a Rescinded Deal

Shareholders are additionally evaluating a proposal that would remunerate Musk after his earlier remuneration deal was overturned by a judicial body in Delaware. The pay plan, estimated to be $56 billion, was contested by a individual investor who won his case. The Delaware court of chancery dismissed Musk's pay package twice. Upon stockholder approval the arrangement in the shareholder meeting, Musk is likely to be awarded the huge sum regardless of if Tesla and Musk succeed in appealing of the lawsuit.

Following Musk's previous compensation plan was initially invalidated, he relocated Tesla's legal headquarters from Delaware to Texas. He repeated the action with SpaceX and other companies' headquarters. In the previous year, according to Texas regulations, shareholders once again approved the compensation plan.

But Delaware's so-called "court of equity" once again rejected one of the biggest CEO payouts in recent times. Following that negative decision, Musk used online platforms to show frustration with the jurisdiction and its "influential presiding justice", perhaps sparking a number of company relocations that Delaware legislators have sought to curb with regulatory measures.

In evaluating whether Musk had improper sway in being given that 2018 pay package, a respected academic expert commented that the court recognized that other "high-profile executives" like Meta's Mark Zuckerberg and the e-commerce pioneer were not awarded this kind of performance-linked deals.