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Tesla shareholders gathered on Thursday to vote on a substantial remuneration plan for CEO Elon Musk estimated at around $1 trillion. Should it pass, this package would demonstrate market faith that the tech magnate can steer the vehicle manufacturer into an age dominated by artificial intelligence and automation. If rejected, Tesla could risk the departure of a key figure who historically built the brand equivalent with electric vehicles.

Historic Milestones and Market Capitalization

If the CEO meets the lofty targets detailed in the pay package revealed at Tesla's shareholder gathering, he could emerge as the first-ever person with a trillion-dollar net worth. For this to happen, he must guide Tesla to a monumental $8.5 trillion in market capitalization, which is eight times its current valuation. Moreover, he will be tasked to launch numerous self-driving cars and advanced androids, while maintaining the corporate profits in the massive revenue figures over the next decade.

Payment Breakdown

The primary objectives of the remuneration structure, divided into 12 tranches, delineate a roadmap for Tesla to attain its colossal valuation. Should targets be met, Musk would be eligible to realize gains on an extra 12% of the company's stock. To qualify, he must maintain involvement with the corporation for at least 7.5 years. He will also contribute to forming a long-term succession plan for the business he has led for in excess of 20 years. The share grants awarded by the new compensation plan, combined with shares assured in his 2018 package, would leave Musk with 25% ownership of Tesla's equity. As of early November, Tesla stock was trading close to its annual peak, at around $450 per share.

Formidable Objectives

During a ten-year period, Musk will be tasked to deliver 20 million EVs to consumers, distribute 10 million live FSD memberships, create and distribute 1 million bipedal machines, and launch 1 million autonomous taxis in revenue-generating use.

Musk will also be tasked to bring the corporation to $400 billion in tangible revenue for four straight quarters. Tesla's real profits for the third quarter of 2025 were $4.2 billion, down 9% from the previous year.

As of November, Musk's net worth was valued at $460 billion, the top in the planet, according to financial data.

Reviving a Rescinded Deal

Investors are furthermore considering a plan that would remunerate Musk after his previous pay package was voided by a judicial body in Delaware. The compensation package, worth an estimated $56 billion, was disputed by a sole shareholder who won his case. The state court denied Musk's pay package on two occasions. Upon stockholder approval the plan in Thursday's vote, Musk is likely to be paid the massive amount regardless of if Tesla and Musk win an appeal of the legal matter.

After Musk's 2018 pay package was originally overturned, he relocated Tesla's corporate home out of Delaware and into Texas. He repeated the action with SpaceX and other business entities. In 2024, per Texas statutes, shareholders for a second time passed the remuneration deal.

But Delaware's often referred to as "judicial body" once again rejected one of the biggest CEO compensation packages in recent times. After that unfavorable ruling, Musk took to social media to express dissatisfaction with the jurisdiction and its "influential presiding justice", perhaps fueling a wave of business departures that Delaware officials have attempted to staunch with legislation.

In reviewing whether Musk had undue influence in being awarded that earlier remuneration deal, a respected academic expert remarked that the judge acknowledged that other "superstar CEOs" like the Meta chief and the Amazon founder were not awarded this kind of performance-linked deals.