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Investors in the electric car maker convened on Thursday to vote on a enormous pay deal for Chief Executive Elon Musk estimated at close to $1 trillion. If approved, this package would demonstrate investor confidence that the entrepreneur can guide the automaker into an era shaped by artificial intelligence and advanced machinery. If denied, Tesla could potentially face the exit of a key figure who historically built the brand interchangeable with EVs.

Historic Milestones and Market Capitalization

Should Musk achieve the lofty objectives detailed in the pay package introduced at Tesla's annual meeting, he could be crowned the world's first person with a trillion-dollar net worth. To accomplish this, he must steer Tesla to a monumental $8.5 trillion in market value, which is an eightfold increase its present worth. Moreover, he will be tasked to roll out numerous driverless automobiles and bipedal machines, while maintaining the financial performance in the massive revenue figures in the upcoming decade.

Reward System

The main goals of the pay package, split into twelve stages, delineate a roadmap for Tesla to achieve its colossal market capitalization. Upon achievement, Musk would be in a position to cash in an additional 12% of the corporation's shares. To be eligible, he must maintain involvement with the company for no less than 7.5 years. Additionally, he must contribute to forming a future leadership strategy for the enterprise he has headed for over 20 years. The stock options awarded by the latest pay package, alongside shares guaranteed in his earlier deal, would grant Musk with a quarter stake of Tesla's equity. By the start of November, Tesla equity was priced approaching its annual peak, at around $450 per stock.

Ambitious Targets

During a ten years, Musk will be tasked to manufacture 20 million EVs to consumers, sell 10 million active full self-driving subscriptions, produce and launch 1 million advanced androids, and launch 1 million self-driving cabs in paid operations.

Musk will also be required to increase the corporation to $400 billion in real profits for four straight quarters. Tesla's real profits for the third quarter of 2025 were $4.2 billion, 9 percent lower from the year before.

By November, Musk's personal wealth was valued at $460 billion, the top in the planet, according to market tracking.

Reviving a Rescinded Deal

Stockholders are furthermore evaluating a plan that would remunerate Musk after his 2018 compensation plan was voided by a court in Delaware. The remuneration deal, valued at around $56 billion, was disputed by a single stockholder who won his case. The Delaware court of chancery dismissed Musk's remuneration deal twice. Should investors pass the proposal in Thursday's vote, Musk is expected to be awarded the huge sum irrespective of whether Tesla and Musk succeed in appealing of the case.

Subsequent to Musk's earlier remuneration deal was first rescinded, he moved Tesla's business registration to Texas from Delaware. He repeated the action with SpaceX and other business entities. In 2024, under Texas law, shareholders again voted to approve the compensation plan.

But Delaware's known as "court of equity" for a second time rejected one of the biggest CEO payouts in recent times. Following that negative decision, Musk took to social media to show frustration with the jurisdiction and its "influential presiding justice", perhaps sparking a series of corporate exits that Delaware officials have sought to curb with new laws.

In evaluating whether Musk had excessive control in being granted that 2018 pay package, a respected law professor commented that the court noted that other "celebrity leaders" like Meta's Mark Zuckerberg and the e-commerce pioneer were not granted this sort of incentive-based contracts.