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Tesla shareholders convened on Thursday to vote on a massive remuneration plan for the company's leader worth approximately close to $1 trillion. If approved, this plan would demonstrate market faith that the entrepreneur can guide the car company into an age shaped by artificial intelligence and automation. If rejected, Tesla could potentially face the loss of a pioneering CEO who once made the corporation synonymous with EVs.

Record-Breaking Targets and Market Capitalization

If the CEO meets the ambitious targets specified in the compensation plan introduced at Tesla's annual meeting, he could emerge as the pioneering trillionaire. To reach this goal, he must guide Tesla to a astronomical $8.5 trillion in market value, which is eight times its current valuation. Additionally, he will be required to roll out numerous autonomous vehicles and advanced androids, while maintaining the corporate profits in the hundreds of billions of dollars in the upcoming decade.

Payment Breakdown

The primary objectives of the pay package, split into a dozen phases, chart a trajectory for Tesla to achieve its enormous valuation. If successful, Musk would be eligible to realize gains on an extra 12% of the company's stock. To qualify, he must maintain involvement with the company for a minimum of 7.5 years. Furthermore, he is required to help develop a future leadership strategy for the organization he has managed for in excess of 20 years. The share grants awarded by the updated remuneration deal, alongside shares promised in his previous compensation plan, would result in Musk with 25% ownership of Tesla's stock. By the start of November, Tesla shares were valued approaching its yearly maximum, at around $450 each share.

Ambitious Targets

During a ten-year period, Musk will be obligated to manufacture 20 million electric vehicles to customers, market 10 million live FSD memberships, develop and sell 1 million bipedal machines, and deploy 1 million self-driving cabs in paid operations.

Musk will also be obligated to bring the firm to $400 billion in tangible revenue for a full year. Tesla's real profits for the third quarter of 2025 were $4.2 billion, 9 percent lower from the previous year.

In November, Musk's personal wealth was pegged at $460 billion, the highest in the planet, based on wealth indexes.

Restoring a Invalidated Deal

Shareholders are additionally reviewing a plan that would remunerate Musk after his earlier remuneration deal was voided by a judicial body in Delaware. The pay plan, estimated to be $56 billion, was contested by a sole shareholder who succeeded legally. The Delaware court of chancery dismissed Musk's remuneration deal twice. Upon stockholder approval the plan in the shareholder meeting, Musk is set to be granted the massive amount regardless of if Tesla and Musk win an appeal of the case.

Following Musk's 2018 pay package was originally overturned, he transferred Tesla's legal headquarters from Delaware to Texas. He followed suit with his aerospace company and other companies' headquarters. In 2024, under Texas law, shareholders again approved the remuneration deal.

But Delaware's so-called "court of equity" for a second time denied one of the most substantial CEO payouts in modern history. Following that negative decision, Musk posted on his accounts to voice displeasure with the jurisdiction and its "activist chief judge", possibly fueling a wave of business departures that Delaware legislators have sought to curb with new laws.

In evaluating whether Musk had improper sway in being given that previous compensation plan, a respected legal scholar commented that the judicial authority acknowledged that other "high-profile executives" like Facebook's founder and Amazon's Jeff Bezos were not awarded this type of goal-oriented agreements.