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Tesla shareholders assembled on Thursday to determine on a massive pay deal for CEO Elon Musk valued at nearly $1 trillion. If approved, this plan would demonstrate market faith that the entrepreneur can guide the automaker into an age defined by AI technology and automation. If denied, Tesla could risk the loss of a key figure who historically built the company name interchangeable with EVs.

Historic Milestones and Market Capitalization

Should Musk achieve the lofty milestones detailed in the pay package introduced at Tesla's shareholder gathering, he could become the world's first person with a trillion-dollar net worth. For this to happen, he must steer Tesla to a monumental $8.5 trillion in market capitalization, which is eight times its current valuation. Moreover, he will be required to launch millions driverless automobiles and advanced androids, while maintaining the corporate profits in the massive revenue figures throughout the coming ten years.

Compensation Structure

The main goals of the remuneration structure, divided into a dozen phases, outline a path for Tesla to reach its colossal valuation. Should targets be met, Musk would be in a position to benefit from an further 12% of the firm's equity. For this to occur, he must maintain involvement with the company for at least 7.5 years. Additionally, he must assist in creating a corporate transition roadmap for the business he has headed for over 20 years. The stock options offered by the new compensation plan, in addition to shares promised in his previous compensation plan, would result in Musk with 25 percent equity of Tesla's stock. In early November, Tesla equity was priced approaching its yearly maximum, at roughly $450 each share.

Ambitious Targets

Over the course of a ten-year period, Musk will be tasked to deliver 20 million zero-emission cars to customers, market 10 million live FSD memberships, create and distribute 1 million bipedal machines, and introduce 1 million autonomous taxis in revenue-generating use.

Musk will additionally be obligated to elevate the firm to $400 billion in actual earnings 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.

In November, Musk's personal wealth was valued at $460 billion, the leading in the globe, as reported by wealth indexes.

Restoring a Revoked Deal

Stockholders are furthermore evaluating a proposal that would reward Musk after his previous pay package was overturned by a judicial body in Delaware. The pay plan, valued at around $56 billion, was contested by a individual investor who succeeded legally. The state court denied Musk's pay package twice. Should investors pass the proposal in Thursday's vote, Musk is likely to be granted the massive amount irrespective of whether Tesla and Musk overturn the ruling of the case.

After Musk's previous compensation plan was initially invalidated, he moved Tesla's legal headquarters from Delaware to Texas. He followed suit with SpaceX and additional corporate bases. In 2024, under Texas law, shareholders again approved the pay package.

But Delaware's so-called "equity court" for a second time ruled against one of the largest CEO pay deals in contemporary business. After that adverse judgment, Musk posted on his accounts to voice displeasure with the state and its "prominent judicial figure", arguably fueling a wave of business departures that Delaware lawmakers have tried to stop with regulatory measures.

In reviewing whether Musk had improper sway in being given that 2018 pay package, a noted law professor remarked that the judge acknowledged that other "celebrity leaders" like the Meta chief and Amazon's Jeff Bezos were not awarded this sort of goal-oriented agreements.