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Tesla shareholders convened on Thursday to decide on a enormous compensation package for CEO Elon Musk worth approximately around $1 trillion. If approved, this plan would showcase shareholder trust that the tech magnate can lead the vehicle manufacturer into an period defined by machine learning and advanced machinery. If rejected, Tesla could risk the departure of a visionary leader who historically built the brand interchangeable with electric vehicles.

Historic Targets and Company Valuation

Should Musk achieve the lofty milestones outlined in the compensation plan introduced at Tesla's annual meeting, he could emerge as the world's first person with a trillion-dollar net worth. For this to happen, he must steer Tesla to a staggering $8.5 trillion in market capitalization, which is 800% of its present worth. Additionally, he will be required to launch millions self-driving cars and bipedal machines, while maintaining the company's bottom line in the hundreds of billions of dollars over the next decade.

Payment Breakdown

The key aims of the compensation plan, organized into twelve stages, delineate a trajectory for Tesla to reach its enormous worth. Should targets be met, Musk would be eligible to benefit from an extra 12% of the company's stock. For this to occur, he must stay committed with the company for a minimum of 7.5 years. He will also help develop a long-term succession plan for the business he has led for more than 20 years. The stock options awarded by the latest pay package, alongside shares assured in his 2018 package, would grant Musk with 25% ownership of Tesla's stock. In early November, Tesla equity was priced near its yearly maximum, at roughly $450 per stock.

Ambitious Targets

During a ten-year period, Musk will be required to manufacture 20 million electric vehicles to customers, market 10 million active full self-driving subscriptions, produce and launch 1 million humanoid robots, and launch 1 million self-driving cabs in paid operations.

Musk will additionally be tasked to bring the firm to $400 billion in tangible revenue for a full year. 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 net worth was estimated at $460 billion, the top in the world, according to financial data.

Reviving a Revoked Package

Shareholders are furthermore considering a plan that would reward Musk after his earlier remuneration deal was voided by a judicial body in Delaware. The remuneration deal, worth an estimated $56 billion, was contested by a single stockholder who won his case. The Delaware court of chancery dismissed Musk's remuneration deal twice. If shareholders approve the plan in the Thursday ballot, Musk is set to be awarded the massive amount irrespective of whether Tesla and Musk win an appeal of the lawsuit.

After Musk's 2018 pay package was first rescinded, he transferred Tesla's business registration to Texas from Delaware. He repeated the action with his aerospace company and other business entities. In the previous year, according to Texas regulations, shareholders for a second time voted to approve the compensation plan.

But Delaware's known as "judicial body" for a second time ruled against one of the most substantial CEO pay deals in modern history. After that negative decision, Musk took to social media to express dissatisfaction with the region and its "influential presiding justice", possibly sparking a number of company relocations that Delaware lawmakers have sought to curb with new laws.

In evaluating whether Musk had improper sway in being awarded that 2018 pay package, a respected academic expert observed that the judge acknowledged that other "superstar CEOs" like the Meta chief and the e-commerce pioneer were not awarded this kind of performance-linked deals.