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Tesla shareholders gathered on Thursday to vote on a substantial compensation package for Chief Executive Elon Musk worth approximately close to $1 trillion. Upon approval, this plan would signal shareholder trust that the tech magnate can guide the vehicle manufacturer into an period defined by AI technology and robotics. Should it fail, Tesla could risk the departure of a pioneering CEO who once made the corporation interchangeable with electric vehicles.

Record-Breaking Milestones and Market Capitalization

Upon reaching the ambitious milestones detailed in the pay package introduced at Tesla's shareholder gathering, he could emerge as the first-ever trillionaire. For this to happen, he must steer Tesla to a astronomical $8.5 trillion in company worth, which is 800% of its current valuation. Additionally, he will be obligated to deploy countless driverless automobiles and bipedal machines, while maintaining the corporate profits in the massive revenue figures throughout the coming ten years.

Reward System

The primary objectives of the compensation plan, divided into twelve stages, delineate a path for Tesla to attain its enormous market capitalization. If successful, Musk would be able to cash in an extra 12% of the company's stock. For this to occur, he must stay committed with the firm for at least 7.5 years. Additionally, he must contribute to forming a long-term succession plan for the business he has managed for more than 20 years. The stock options offered by the new compensation plan, combined with shares assured in his earlier deal, would result in Musk with a quarter stake of Tesla's shares. By the start of November, Tesla equity was priced approaching its 52-week high, at around $450 per share.

Lofty Goals

Throughout a decade, Musk will be tasked to produce 20 million electric vehicles to consumers, distribute 10 million active full self-driving subscriptions, develop and sell 1 million bipedal machines, and launch 1 million self-driving cabs in commercial service.

Musk will additionally be obligated to bring the corporation to $400 billion in real profits for four consecutive quarters. Tesla's tangible revenue for the Q3 2025 were $4.2 billion, a 9% decrease from the year before.

In November, Musk's personal wealth was pegged at $460 billion, the top in the world, according to market tracking.

Reinstating a Rescinded Deal

Shareholders are furthermore considering a plan that would compensate Musk after his previous pay package was invalidated by a legal authority in Delaware. The compensation package, worth an estimated $56 billion, was contested by a sole shareholder who succeeded legally. The Delaware court of chancery rejected Musk's compensation plan on two occasions. If shareholders approve the proposal in the Thursday ballot, Musk is likely to be granted the massive amount irrespective of whether Tesla and Musk succeed in appealing of the legal matter.

After Musk's previous compensation plan was originally overturned, he moved Tesla's business registration out of Delaware and into Texas. He did the same with his aerospace company and other companies' headquarters. In the previous year, per Texas statutes, shareholders again approved the remuneration deal.

But Delaware's so-called "court of equity" once again rejected one of the largest CEO compensation packages in modern history. In the wake of that negative decision, Musk posted on his accounts to express dissatisfaction with the state and its "influential presiding justice", possibly sparking a number of company relocations that Delaware legislators have sought to curb with new laws.

In reviewing whether Musk had undue influence in being given that previous compensation plan, a noted law professor observed that the judge recognized that other "high-profile executives" like the Meta chief and the e-commerce pioneer were not given this kind of performance-linked deals.