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Tesla shareholders convened on Thursday to decide on a substantial pay deal for CEO Elon Musk worth approximately close to $1 trillion. Upon approval, this deal would showcase investor confidence that the billionaire can lead the automaker into an era shaped by artificial intelligence and robotics. If denied, Tesla could risk the departure of a key figure who historically built the corporation interchangeable with EVs.

Record-Breaking Goals and Company Valuation

If the CEO meets the formidable milestones specified in the compensation plan revealed at Tesla's corporate assembly, he could emerge as the world's first person with a trillion-dollar net worth. To accomplish this, he must lead Tesla to a monumental $8.5 trillion in market value, which is 800% of its present worth. Furthermore, he will be tasked to deploy numerous autonomous vehicles and humanoid robots, while upholding the company's bottom line in the massive revenue figures in the upcoming decade.

Reward System

The primary objectives of the pay package, divided into a dozen phases, outline a roadmap for Tesla to achieve its colossal worth. If successful, Musk would be able to realize gains on an additional 12% of the firm's equity. To qualify, he must maintain involvement with the corporation for no less than 7.5 years. He will also help develop a long-term succession plan for the business he has headed for over 20 years. The equity incentives provided by the updated remuneration deal, alongside shares assured in his earlier deal, would grant Musk with 25 percent equity of Tesla's equity. By the start of November, Tesla stock was trading near its annual peak, at around $450 per share.

Lofty Goals

During a ten-year period, Musk will be obligated to produce 20 million zero-emission cars to customers, market 10 million live FSD memberships, develop and sell 1 million humanoid robots, and deploy 1 million autonomous taxis in revenue-generating use.

Musk will additionally be required to bring the company to $400 billion in real profits for four consecutive quarters. Tesla's tangible revenue for the third quarter of 2025 were $4.2 billion, 9 percent lower from the year before.

As of November, Musk's net worth was estimated at $460 billion, the top in the globe, as reported by financial data.

Reinstating a Revoked Plan

Stockholders are furthermore considering a proposal that would remunerate Musk after his earlier remuneration deal was voided by a judicial body in Delaware. The compensation package, estimated to be $56 billion, was challenged by a single stockholder who won his case. The state court denied Musk's remuneration deal twice. If shareholders approve the plan in the shareholder meeting, Musk is expected to be awarded the huge sum regardless of if Tesla and Musk succeed in appealing of the legal matter.

Subsequent to Musk's 2018 pay package was initially invalidated, he relocated Tesla's corporate home out of Delaware and into Texas. He did the same with his aerospace company and other companies' headquarters. In 2024, per Texas statutes, shareholders once again passed the remuneration deal.

But Delaware's often referred to as "equity court" once again denied one of the largest CEO compensation packages in modern history. After that negative decision, Musk posted on his accounts to express dissatisfaction with the jurisdiction and its "prominent judicial figure", perhaps igniting a number of company relocations that Delaware legislators have tried to stop with legislation.

In evaluating whether Musk had improper sway in being granted that 2018 pay package, a noted 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 type of goal-oriented agreements.