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Tesla shareholders assembled on Thursday to vote on a substantial compensation package for the company's leader estimated at close to $1 trillion. If approved, this plan would demonstrate shareholder trust that the entrepreneur can guide the automaker into an period dominated by artificial intelligence and automation. If denied, Tesla could confront the departure of a visionary leader who once made the corporation synonymous with zero-emission cars.

Record-Breaking Milestones and Company Valuation

If the CEO meets the ambitious milestones detailed in the compensation plan revealed at Tesla's corporate assembly, he could become the world's first person with a trillion-dollar net worth. For this to happen, he must lead Tesla to a astronomical $8.5 trillion in market value, which is an eightfold increase its present worth. Additionally, he will be required to deploy countless autonomous vehicles and humanoid robots, while sustaining the financial performance in the hundreds of billions over the next decade.

Reward System

The primary objectives of the compensation plan, split into twelve stages, outline a trajectory for Tesla to reach its massive market capitalization. If successful, Musk would be eligible to benefit from an extra 12% of the company's stock. To be eligible, he must stay committed with the firm for at least 7.5 years. He will also contribute to forming a long-term succession plan for the enterprise he has managed for more than 20 years. The share grants provided by the latest pay package, combined with shares promised in his 2018 package, would grant Musk with 25% ownership of Tesla's stock. In early November, Tesla shares were valued near its 52-week high, at around $450 per share.

Formidable Objectives

Over the course of a ten years, Musk will be tasked to manufacture 20 million electric vehicles to consumers, sell 10 million live FSD memberships, develop and sell 1 million humanoid robots, and launch 1 million autonomous taxis in commercial service.

Musk will additionally be tasked to increase the firm to $400 billion in tangible revenue for four consecutive quarters. Tesla's real profits for the Q3 2025 were $4.2 billion, a 9% decrease from the same period last year.

By November, Musk's personal wealth was pegged at $460 billion, the leading in the globe, based on wealth indexes.

Reinstating a Invalidated Plan

Stockholders are additionally evaluating a plan that would compensate Musk after his 2018 compensation plan was invalidated by a court in Delaware. The remuneration deal, worth an estimated $56 billion, was disputed by a individual investor who succeeded legally. The state court denied Musk's pay package on two occasions. If shareholders approve the arrangement in Thursday's vote, Musk is set to be awarded the massive amount irrespective of whether Tesla and Musk win an appeal of the lawsuit.

After Musk's previous compensation plan was initially invalidated, he transferred Tesla's business registration to Texas from Delaware. He did the same with SpaceX and other companies' headquarters. In 2024, per Texas statutes, shareholders for a second time voted to approve the compensation plan.

But Delaware's so-called "court of equity" once again ruled against one of the most substantial CEO compensation packages in modern history. In the wake of that negative decision, Musk took to social media to express dissatisfaction with the jurisdiction and its "prominent judicial figure", possibly sparking a number of company relocations that Delaware officials have sought to curb with legislation.

In considering whether Musk had undue influence in being granted that 2018 pay package, a prominent academic expert commented that the court acknowledged that other "high-profile executives" like Facebook's founder and Amazon's Jeff Bezos were not given this kind of goal-oriented agreements.