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Investors in the electric car maker convened on Thursday to decide on a enormous remuneration plan for the company's leader valued at close to $1 trillion. Should it pass, this plan would showcase shareholder trust that the billionaire can guide the car company into an era dominated by machine learning and robotics. Should it fail, Tesla could potentially face the departure of a visionary leader who previously established the corporation interchangeable with EVs.

Record-Breaking Targets and Market Capitalization

If the CEO meets the lofty targets outlined in the remuneration deal presented at Tesla's corporate assembly, he could emerge as the pioneering person with a trillion-dollar net worth. To accomplish this, he must guide Tesla to a monumental $8.5 trillion in company worth, which is an eightfold increase its present worth. Furthermore, he will be required to launch numerous driverless automobiles and bipedal machines, while maintaining the corporate profits in the hundreds of billions throughout the coming ten years.

Payment Breakdown

The primary objectives of the remuneration structure, divided into a dozen phases, chart a path for Tesla to attain its enormous valuation. Should targets be met, Musk would be in a position to cash in an extra 12% of the firm's equity. To qualify, he must maintain involvement with the company for a minimum of 7.5 years. Additionally, he must help develop a corporate transition roadmap for the enterprise he has headed for over 20 years. The share grants provided by the latest pay package, in addition to shares assured in his earlier deal, would result in Musk with a quarter stake of Tesla's stock. By the start of November, Tesla equity was priced near its yearly maximum, at roughly $450 per stock.

Lofty Goals

During a ten years, Musk will be required to manufacture 20 million EVs to customers, distribute 10 million live FSD memberships, produce and launch 1 million advanced androids, and launch 1 million autonomous taxis in commercial service.

Musk will also be required to elevate the company to $400 billion in tangible revenue for four straight quarters. Tesla's tangible revenue for the third quarter of 2025 were $4.2 billion, down 9% from the year before.

In November, Musk's net worth was estimated at $460 billion, the top in the world, based on market tracking.

Restoring a Rescinded Package

Investors are additionally reviewing a plan that would remunerate Musk after his earlier remuneration deal was voided by a court in Delaware. The compensation package, worth an estimated $56 billion, was contested by a individual investor who won his case. The state court rejected Musk's remuneration deal on multiple instances. If shareholders approve the arrangement in Thursday's vote, Musk is set to be granted the huge sum regardless of if Tesla and Musk win an appeal of the case.

After Musk's 2018 pay package was initially invalidated, he moved Tesla's business registration from Delaware to Texas. He did the same with SpaceX and additional corporate bases. In last year, per Texas statutes, shareholders for a second time voted to approve the remuneration deal.

But Delaware's so-called "judicial body" for a second time rejected one of the most substantial CEO payouts in modern history. In the wake of that unfavorable ruling, Musk took to social media to show frustration with the region and its "activist chief judge", possibly sparking a wave of business departures that Delaware lawmakers have tried to stop with regulatory measures.

In evaluating whether Musk had improper sway in being awarded that previous compensation plan, a respected law professor remarked that the court acknowledged that other "celebrity leaders" like Meta's Mark Zuckerberg and the Amazon founder were not granted this kind of incentive-based contracts.