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Investors in the electric car maker gathered this Thursday to decide on a enormous pay deal for Chief Executive Elon Musk valued at close to $1 trillion. Upon approval, this deal would showcase investor confidence that the tech magnate can lead the automaker into an era shaped by machine learning and automation. Should it fail, Tesla could risk the loss of a pioneering CEO who historically built the company name synonymous with electric vehicles.

Historic Goals and Company Valuation

Upon reaching the lofty milestones outlined in the pay package presented at Tesla's annual meeting, he could become the pioneering person with a trillion-dollar net worth. To reach this goal, he must guide Tesla to a staggering $8.5 trillion in market capitalization, which is eight times its existing market cap. Furthermore, he will be tasked to deploy numerous self-driving cars and humanoid robots, while sustaining the corporate profits in the massive revenue figures in the upcoming decade.

Payment Breakdown

The main goals of the pay package, split into 12 tranches, delineate a trajectory for Tesla to achieve its enormous valuation. Should targets be met, Musk would be in a position to benefit from an extra 12% of the company's stock. For this to occur, he must stay committed with the firm for at least 7.5 years. Additionally, he must help develop a future leadership strategy for the organization he has led for in excess of 20 years. The share grants awarded by the updated remuneration deal, alongside shares assured in his earlier deal, would leave Musk with 25 percent equity of Tesla's equity. By the start of November, Tesla stock was trading near its 52-week high, at roughly $450 per share.

Ambitious Targets

During a ten-year period, Musk will be required to deliver 20 million EVs to consumers, distribute 10 million live FSD memberships, create and distribute 1 million humanoid robots, and deploy 1 million self-driving cabs in revenue-generating use.

Musk will also be required to bring the firm to $400 billion in actual earnings for four straight quarters. Tesla's tangible revenue for the third quarter of 2025 were $4.2 billion, a 9% decrease from the year before.

In November, Musk's net worth was valued at $460 billion, the highest in the world, according to financial data.

Reviving a Rescinded Deal

Investors are also considering a proposal that would remunerate Musk after his 2018 compensation plan was overturned by a court in Delaware. The remuneration deal, estimated to be $56 billion, was contested by a single stockholder who prevailed in court. The Delaware judicial system dismissed Musk's remuneration deal on multiple instances. If shareholders approve the plan in Thursday's vote, Musk is likely to be granted the huge sum regardless of if Tesla and Musk overturn the ruling of the lawsuit.

Following Musk's earlier remuneration deal 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 for a second time voted to approve the compensation plan.

But Delaware's so-called "judicial body" again ruled against one of the most substantial CEO pay deals in contemporary business. Following that unfavorable ruling, Musk posted on his accounts to show frustration with the state and its "influential presiding justice", arguably sparking a wave of business departures that Delaware officials have tried to stop with legislation.

In reviewing whether Musk had excessive control in being awarded that previous compensation plan, a prominent academic expert commented that the court noted that other "celebrity leaders" like Facebook's founder and Amazon's Jeff Bezos were not awarded this type of incentive-based contracts.