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Investors in the electric car maker assembled on Thursday to vote on a substantial remuneration plan for the company's leader estimated at nearly $1 trillion. Upon approval, this deal would signal investor confidence that the tech magnate can lead the car company into an period shaped by machine learning and robotics. Should it fail, Tesla could confront the exit of a key figure who once made the company name equivalent with electric vehicles.

Record-Breaking Goals and Company Valuation

If the CEO meets the lofty objectives outlined in the pay package introduced at Tesla's shareholder gathering, he could emerge as the world's first trillionaire. For this to happen, he must lead Tesla to a astronomical $8.5 trillion in market capitalization, which is an eightfold increase its existing market cap. Furthermore, he will be required to deploy numerous self-driving cars and humanoid robots, while maintaining the financial performance in the hundreds of billions over the next decade.

Reward System

The main goals of the remuneration structure, split into 12 tranches, outline a path for Tesla to reach its massive worth. If successful, Musk would be able to realize gains on an further 12% of the company's stock. To be eligible, he must maintain involvement with the firm for a minimum of 7.5 years. Furthermore, he is required to assist in creating a corporate transition roadmap for the business he has led for more than 20 years. The stock options provided by the new compensation plan, combined with shares promised in his 2018 package, would leave Musk with 25% ownership of Tesla's shares. As of early November, Tesla stock was trading approaching its annual peak, at approximately $450 per share.

Lofty Goals

During a ten-year period, Musk will be tasked to deliver 20 million electric vehicles to consumers, distribute 10 million live FSD memberships, create and distribute 1 million advanced androids, and deploy 1 million self-driving cabs in commercial service.

Musk will furthermore be obligated to elevate the firm to $400 billion in actual earnings for four straight quarters. Tesla's actual earnings for the third quarter of 2025 were $4.2 billion, a 9% decrease from the previous year.

By November, Musk's net worth was pegged at $460 billion, the leading in the planet, based on financial data.

Reinstating a Rescinded Plan

Investors are additionally reviewing a plan that would remunerate Musk after his earlier remuneration deal was voided by a legal authority in Delaware. The compensation package, estimated to be $56 billion, was contested by a sole shareholder who won his case. The Delaware court of chancery dismissed Musk's pay package twice. Upon stockholder approval the proposal in Thursday's vote, Musk is expected to be granted the substantial payout irrespective of whether Tesla and Musk overturn the ruling of the lawsuit.

Subsequent to Musk's 2018 pay package was first rescinded, he moved Tesla's corporate home out of Delaware and into Texas. He followed suit with the rocket firm and additional corporate bases. In 2024, under Texas law, shareholders once again approved the compensation plan.

But Delaware's known as "judicial body" again ruled against one of the biggest CEO pay deals in recent times. After that unfavorable ruling, Musk used online platforms to express dissatisfaction with the state and its "prominent judicial figure", arguably sparking a series of corporate exits 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 remarked that the court recognized that other "superstar CEOs" like the Meta chief and the Amazon founder were not granted this kind of goal-oriented agreements.