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Investors in the electric car maker convened this Thursday to determine on a enormous compensation package for CEO Elon Musk estimated at close to $1 trillion. Upon approval, this deal would demonstrate market faith that the billionaire can lead the car company into an era dominated by artificial intelligence and advanced machinery. If rejected, Tesla could confront the loss of a visionary leader who once made the company name synonymous with zero-emission cars.

Historic Targets and Market Capitalization

Should Musk achieve the lofty objectives detailed in the compensation plan presented 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 steer Tesla to a staggering $8.5 trillion in market value, which is eight times its present worth. Furthermore, he will be required to roll out numerous autonomous vehicles and bipedal machines, while sustaining the financial performance in the massive revenue figures throughout the coming ten years.

Reward System

The main goals of the compensation plan, divided into a dozen phases, chart a path for Tesla to reach its enormous market capitalization. If successful, Musk would be eligible to cash in an extra 12% of the firm's equity. To be eligible, he must stay committed with the company for at least 7.5 years. Additionally, he must help develop a corporate transition roadmap for the business he has managed for over 20 years. The equity incentives offered by the latest pay package, alongside shares assured in his 2018 package, would grant Musk with 25% ownership of Tesla's stock. As of early November, Tesla stock was trading close to its annual peak, at roughly $450 per stock.

Ambitious Targets

Over the course of a ten-year period, Musk will be required to manufacture 20 million EVs to consumers, distribute 10 million live FSD memberships, create and distribute 1 million advanced androids, and introduce 1 million robotaxis in paid operations.

Musk will also be required to elevate the corporation to $400 billion in actual earnings for four straight quarters. Tesla's tangible revenue for the third quarter of 2025 were $4.2 billion, down 9% from the same period last year.

In November, Musk's net worth was valued at $460 billion, the top in the globe, based on financial data.

Reinstating a Revoked Plan

Shareholders are also reviewing a plan that would remunerate Musk after his 2018 compensation plan was voided by a court in Delaware. The pay plan, valued at around $56 billion, was challenged by a sole shareholder who succeeded legally. The state court dismissed Musk's pay package twice. Upon stockholder approval the proposal in the shareholder meeting, Musk is expected to be granted the huge sum whether or not Tesla and Musk succeed in appealing of the legal matter.

After Musk's previous compensation plan was first rescinded, he transferred Tesla's corporate home to Texas from Delaware. He repeated the action with SpaceX and other business entities. In 2024, per Texas statutes, shareholders again passed the compensation plan.

But Delaware's so-called "judicial body" for a second time ruled against one of the most substantial CEO compensation packages in contemporary business. In the wake of that unfavorable ruling, Musk posted on his accounts to express dissatisfaction with the state and its "activist chief judge", possibly sparking a wave of business departures that Delaware lawmakers have tried to stop with legislation.

In reviewing whether Musk had undue influence in being awarded that previous compensation plan, a noted legal scholar observed that the judicial authority acknowledged that other "celebrity leaders" like the Meta chief and the Amazon founder were not awarded this type of performance-linked deals.