Tesla To Approve $1 Trillion Pay For Musk? Four Key Things To Know Before Big Shareholder Decision Today

If the force is in favor of Tesla Chief Elon Musk, he will soon be on the path to become the world's first trillionaire.

One of the key agendas for Tesla's annual meeting, scheduled for Thursday afternoon, is the billionaire's pay package. While Musk's pay packages have garnered positive votes from the shareholders of the company historically, this year may prove to be a tricky one with some roadblocks on the way.

Here are four key things to know before the voting commences:

If all goes well and Musk's pay package is approved, he will receive the compensation through a stock grant that would give Musk as much as 423.7 million additional shares of Tesla stock over the next decade.

At the end of these 10 years, the shares will cumulatively be worth $1 trillion, given that Tesla reaches a requisite $8.5 trillion market cap, which will ensure Musk qualifying for the full potential payout.

Additionally, Tesla would need to fulfill a series of operational and financial targets for the full options to be available to Musk.

Tesla's stock will need to increase 466% from its current share price, and only a nudge (70%) higher than the world's most valuable company, Nvidia. Nvidia hit a record $5 trillion market cap last week.

Some of the tallest speed bumps on the way include possibility of Musk wandering into "other interests" outside of the company, shaking up shareholders' confidence; along with Tesla's underwhelming financial performance so far in the current fiscal year.

The company saw EV sales and profits plummet after losing US government support.

However, Musk and Tesla executives scoff at those problems while putting their eggs in the basket of diversification. Self-driving cars including robotaxis are being seen as Tesla's new 'It' factor.

Although even if the pay package gets approved, CNN reports say that Musk will need to resolve issues in the company and deliver on the big promises he has made for the future.

In the past, pay packages have generally been approved for the Tesla Chief. He has a sea of analysts and market investors backing him up.

Even those who do not support Musk think the package will be greenlit without problem.

Around 84% of shareholders voted yes to his pay during the most recent vote on the same.

"I think it passes no matter what", Ross Gerber, Tesla supporter-turned harsh critic told CNN.