Image Source: Unsplash

November 6 is a pivotal day in Tesla’s (Nasdaq: TSLA) history and could mark a major economic milestone. On Thursday, November 6, Tesla shareholders will vote on several proposals that could shape the EV car marker’s future and potentially make its CEO, Elon Musk, the world’s first trillionaire.

There are some 14 questions on the ballot, but the one that has received the most attention is the proposed $1 trillion performance award for Musk. The award would keep Musk running Tesla for at least another 7.5 years and if he meets the 12 different market cap and operational milestones in the proposal, he will amass $1 trillion over time.

The CEO Performance Award, already approved by the board, features 12 share tranches over a 10-year period which include operational and market cap milestones. Ultimately, the goal would be to hit a market cap of $8.5 trillion for Tesla stock in 10 years, so by late 2035, if approved. The operational milestones include 20 million Teslas delivered, 1 million bots delivered, 1 million robotaxis in operation, along with earnings goals and other milestones.

Currently, Tesla’s market cap is about $1.5 trillion. Nvidia is the largest company, as it just became the first company ever to cross $5 trillion in market cap.

For each of the milestones the company hits, Musk gets 1% voting rights in the company. So, if it did reach the $8.5 trillion in market cap and the operational milestones, that would be a 12% stake of $8.5 trillion – or roughly $1 trillion in compensation. But he does not earn the economic value of those voting rights until at least 7.5 years in, ensuring that he stays with the company for at least that long.

Arguments for and against the CEO award

The other proposals on the shareholders ballots are the election of board members and a new equity incentive plan, among others. But the CEO Performance Award is by far the most consequential – and controversial.

Major institutional investors have come out both for and against the pay-for-performance package. Among the most notable supporters of the package are Schwab Asset Management, ARK Invest, and the Florida State Board of Administration.

Thanks Cathie! https://t.co/E98nMiPuK2

— Elon Musk (@elonmusk) October 31, 2025

“Elon Musk is the most productive human being on earth. And a human being who attracts incredible talent – people who want to solve the world’s hardest problems. This is a win-win for all of us if Elon succeeds this time,” ARK Invest CEO Cathie Wood said.

Those investors against the deal include the Norway Sovereign Wealth Fund and the California Public Employees Retirement System, along with proxy advisors Institutional Shareholder Services (ISS) and Glass Lewis.

“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk- consistent with our views on executive compensation,” officials at Norges Bank Investment Management, which runs the Norway Sovereign Wealth Fund said, explaining their vote against the Musk payment plan.

Musk himself, when asked if he would leave Tesla if the proposal is voted down, said, “Let’s just say I’m not going to build a robot army if I can be easily kicked out by activist investors. No way,” according to an SEC filing.

Voting ends tonight at midnight ET with the shareholder meeting held at 4:00 p.m. ET on November 6.

Pivotal time for Tesla

Tesla stock had been a juggernaut for most of the past decade to become one of the largest companies in the world. It has an average annualized return of 40% over the past 10 years and 26% over the past 5 years.

This year it has had its ups and downs, plummeting earlier in the year on declining Tesla sales and concern over Musk’s involvement with the Trump Administration and the Department of Government Efficiency (DOGE), which he has since left.

In Q3, Tesla had its best sales quarter ever, with record revenue and sales. That was due to consumers buying up Teslas before the EV incentives ended on September 390. The stock price has surged in recent months, in expectation of the Q3 buying rush.

But now, with the EV incentives ended, Tesla faces an uncertain future as it pivots with massive investments in AI, robotics, autonomous vehicles, and energy storage.

More By This Author: