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Investors in the electric car maker assembled on Thursday to decide on a substantial pay deal for the company's leader estimated at close to $1 trillion. Should it pass, this deal would demonstrate market faith that the tech magnate can steer the automaker into an age defined by artificial intelligence and automation. Should it fail, Tesla could potentially face the loss of a key figure who historically built the company name synonymous with EVs.

Historic Goals and Market Capitalization

Should Musk achieve the ambitious objectives detailed in the compensation plan revealed at Tesla's corporate assembly, he could be crowned the first-ever person with a trillion-dollar net worth. To reach this goal, he must lead Tesla to a astronomical $8.5 trillion in market capitalization, which is eight times its present worth. Additionally, he will be required to deploy millions driverless automobiles and bipedal machines, while sustaining the financial performance in the hundreds of billions of dollars throughout the coming ten years.

Compensation Structure

The primary objectives of the pay package, organized into 12 tranches, delineate a trajectory for Tesla to attain its enormous valuation. If successful, Musk would be able to realize gains on an extra 12% of the corporation's shares. To be eligible, he must stay committed with the corporation for a minimum of 7.5 years. He will also contribute to forming a long-term succession plan for the organization he has headed for over 20 years. The share grants offered by the new compensation plan, alongside shares assured in his earlier deal, would result in Musk with a quarter stake of Tesla's shares. In early November, Tesla stock was trading close to its yearly maximum, at roughly $450 per stock.

Formidable Objectives

Over the course of a ten-year period, Musk will be tasked to manufacture 20 million EVs to customers, distribute 10 million active full self-driving subscriptions, create and distribute 1 million humanoid robots, and launch 1 million self-driving cabs in paid operations.

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

In November, Musk's net worth was pegged at $460 billion, the highest in the globe, according to wealth indexes.

Restoring a Invalidated Plan

Investors are additionally considering a arrangement that would remunerate Musk after his earlier remuneration deal was invalidated by a judicial body in Delaware. The remuneration deal, worth an estimated $56 billion, was disputed by a sole shareholder who succeeded legally. The Delaware court of chancery rejected Musk's pay package twice. Should investors pass the arrangement in the shareholder meeting, Musk is set to be awarded the substantial payout whether or not Tesla and Musk win an appeal of the case.

Following Musk's earlier remuneration deal was originally overturned, he relocated Tesla's legal headquarters out of Delaware and into Texas. He repeated the action with the rocket firm and additional corporate bases. In last year, per Texas statutes, shareholders once again voted to approve the compensation plan.

But Delaware's often referred to as "court of equity" for a second time ruled against one of the most substantial CEO payouts in contemporary business. In the wake of that negative decision, Musk took to social media to show frustration with the region and its "prominent judicial figure", possibly igniting a series of corporate exits that Delaware officials have tried to stop with regulatory measures.

In evaluating whether Musk had undue influence in being granted that previous compensation plan, a respected academic expert observed that the judicial authority recognized that other "celebrity leaders" like Meta's Mark Zuckerberg and the Amazon founder were not granted this kind of incentive-based contracts.