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Tesla shareholders assembled on Thursday to vote on a massive compensation package for Chief Executive Elon Musk valued at around $1 trillion. Upon approval, this package would signal shareholder trust that the entrepreneur can guide the car company into an era defined by AI technology and advanced machinery. Should it fail, Tesla could potentially face the exit of a key figure who previously established the brand synonymous with EVs.

Record-Breaking Goals and Company Valuation

Should Musk achieve the formidable milestones outlined in the remuneration deal introduced at Tesla's shareholder gathering, he could emerge as the world's first trillionaire. To accomplish this, he must steer Tesla to a monumental $8.5 trillion in market value, which is 800% of its present worth. Moreover, he will be tasked to roll out millions driverless automobiles and advanced androids, while sustaining the company's bottom line in the hundreds of billions throughout the coming ten years.

Payment Breakdown

The primary objectives of the remuneration structure, split into a dozen phases, outline a trajectory for Tesla to attain its enormous market capitalization. Upon achievement, Musk would be able to cash in an additional 12% of the company's stock. To be eligible, he must remain vested with the company for a minimum of 7.5 years. Additionally, he must assist in creating a long-term succession plan for the business he has headed for in excess of 20 years. The stock options offered by the latest pay package, alongside shares assured in his 2018 package, would result in Musk with 25% ownership of Tesla's equity. As of early November, Tesla shares were valued approaching its yearly maximum, at around $450 per stock.

Formidable Objectives

Throughout a decade, Musk will be obligated to deliver 20 million EVs to customers, sell 10 million live FSD memberships, create and distribute 1 million bipedal machines, and deploy 1 million robotaxis in paid operations.

Musk will also be obligated to increase the corporation to $400 billion in real profits 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 net worth was estimated at $460 billion, the leading in the planet, according to wealth indexes.

Reinstating a Rescinded Deal

Stockholders are also evaluating a arrangement that would remunerate Musk after his earlier remuneration deal was overturned by a judicial body in Delaware. The remuneration deal, valued at around $56 billion, was contested by a individual investor who won his case. The Delaware judicial system rejected Musk's compensation plan on two occasions. Upon stockholder approval the plan in the shareholder meeting, Musk is set to be paid the massive amount regardless of if Tesla and Musk overturn the ruling of the legal matter.

Following Musk's 2018 pay package was first rescinded, he relocated Tesla's legal headquarters to Texas from Delaware. He followed suit with SpaceX and other business entities. In the previous year, under Texas law, shareholders once again approved the pay package.

But Delaware's often referred to as "equity court" for a second time denied one of the largest CEO compensation packages in modern history. In the wake of that negative decision, Musk used online platforms to voice displeasure with the jurisdiction and its "activist chief judge", arguably fueling a wave of business departures that Delaware legislators have attempted to staunch with regulatory measures.

In evaluating whether Musk had excessive control in being awarded that 2018 pay package, a noted legal scholar commented that the court recognized that other "high-profile executives" like the Meta chief and the Amazon founder were not awarded this kind of performance-linked deals.