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Investors in the electric car maker convened on Thursday to vote on a enormous pay deal for the company's leader valued at nearly $1 trillion. Upon approval, this deal would demonstrate investor confidence that the entrepreneur can steer the car company into an age dominated by machine learning and robotics. If rejected, Tesla could potentially face the exit of a key figure who once made the brand equivalent with EVs.

Historic Milestones and Company Valuation

Should Musk achieve the ambitious objectives outlined in the compensation plan introduced at Tesla's shareholder gathering, he could be crowned 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 value, which is 800% of its present worth. Additionally, he will be obligated to roll out countless autonomous vehicles and bipedal machines, while sustaining 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, split into a dozen phases, delineate a path for Tesla to reach its massive worth. Upon achievement, Musk would be able to cash in an further 12% of the corporation's shares. To qualify, he must stay committed with the firm for a minimum of 7.5 years. Furthermore, he is required to contribute to forming a corporate transition roadmap for the organization he has managed for over 20 years. The share grants offered by the new compensation plan, in addition to shares guaranteed in his earlier deal, would result in Musk with 25% ownership of Tesla's equity. In early November, Tesla stock was trading approaching its 52-week high, at around $450 per stock.

Ambitious Targets

Over the course of a decade, Musk will be required to manufacture 20 million EVs to customers, sell 10 million operational autonomous driving plans, produce and launch 1 million advanced androids, and deploy 1 million robotaxis in revenue-generating use.

Musk will also be required to elevate the corporation to $400 billion in tangible revenue for a full year. Tesla's tangible revenue for the Q3 2025 were $4.2 billion, a 9% decrease from the year before.

As of November, Musk's personal wealth was pegged at $460 billion, the highest in the globe, according to financial data.

Reinstating a Revoked Plan

Investors are also considering a arrangement that would compensate Musk after his 2018 compensation plan was invalidated by a legal authority in Delaware. The pay plan, estimated to be $56 billion, was disputed by a single stockholder who won his case. The Delaware court of chancery rejected Musk's pay package on multiple instances. Should investors pass the arrangement in the Thursday ballot, Musk is expected to be awarded the massive amount whether or not Tesla and Musk overturn the ruling of the lawsuit.

Following Musk's previous compensation plan was first rescinded, he relocated Tesla's business registration from Delaware to Texas. He did the same with the rocket firm and additional corporate bases. In 2024, per Texas statutes, shareholders again voted to approve the pay package.

But Delaware's known as "court of equity" for a second time denied one of the most substantial CEO pay deals in recent times. In the wake of that adverse judgment, Musk posted on his accounts to show frustration with the region and its "influential presiding justice", possibly fueling a wave of business departures that Delaware legislators have attempted to staunch with regulatory measures.

In evaluating whether Musk had undue influence in being granted that earlier remuneration deal, a respected legal scholar commented that the judge recognized that other "superstar CEOs" like Facebook's founder and the e-commerce pioneer were not granted this type of goal-oriented agreements.