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Investors in the electric car maker convened on Thursday to vote on a massive remuneration plan for CEO Elon Musk valued at close to $1 trillion. If approved, this plan would demonstrate shareholder trust that the billionaire can guide the car company into an era defined by artificial intelligence and automation. Should it fail, Tesla could risk the departure of a key figure who historically built the brand synonymous with zero-emission cars.

Record-Breaking Goals and Market Capitalization

Should Musk achieve the formidable milestones outlined in the compensation plan revealed at Tesla's corporate assembly, he could be crowned the world's first person with a trillion-dollar net worth. To reach this goal, he must lead Tesla to a monumental $8.5 trillion in company worth, which is an eightfold increase its current valuation. Moreover, he will be obligated to roll out numerous driverless automobiles and humanoid robots, while sustaining the company's bottom line in the hundreds of billions over the next decade.

Payment Breakdown

The primary objectives of the compensation plan, organized into 12 tranches, chart a path for Tesla to attain its enormous worth. If successful, Musk would be able to benefit from an further 12% of the company's stock. To be eligible, he must remain vested with the company for a minimum of 7.5 years. Furthermore, he is required to assist in creating a corporate transition roadmap for the enterprise he has headed for over 20 years. The equity incentives offered by the updated remuneration deal, in addition to shares guaranteed in his earlier deal, would grant Musk with 25% ownership of Tesla's shares. In early November, Tesla stock was trading approaching its annual peak, at around $450 per stock.

Lofty Goals

Throughout a ten years, Musk will be required to manufacture 20 million zero-emission cars to customers, distribute 10 million live FSD memberships, produce and launch 1 million bipedal machines, and deploy 1 million self-driving cabs in commercial service.

Musk will furthermore be obligated to bring the firm to $400 billion in actual earnings for four straight quarters. Tesla's tangible revenue for the Q3 2025 were $4.2 billion, a 9% decrease from the previous year.

By November, Musk's personal wealth was pegged at $460 billion, the top in the world, according to financial data.

Reviving a Revoked Deal

Stockholders are additionally reviewing a plan that would compensate Musk after his previous pay package was overturned by a court in Delaware. The pay plan, worth an estimated $56 billion, was contested by a sole shareholder who succeeded legally. The Delaware court of chancery denied Musk's compensation plan on two occasions. If shareholders approve the proposal in Thursday's vote, Musk is set to be granted the substantial payout whether or not Tesla and Musk succeed in appealing of the legal matter.

After Musk's previous compensation plan was originally overturned, he relocated Tesla's legal headquarters to Texas from Delaware. He followed suit with his aerospace company and additional corporate bases. In the previous year, under Texas law, shareholders once again voted to approve the pay package.

But Delaware's often referred to as "judicial body" for a second time denied one of the biggest CEO compensation packages in contemporary business. Following that unfavorable ruling, Musk took to social media to express dissatisfaction with the state and its "activist chief judge", arguably sparking a number of company relocations that Delaware lawmakers have attempted to staunch with new laws.

In considering whether Musk had undue influence in being awarded that previous compensation plan, a respected legal scholar commented that the judge noted that other "superstar CEOs" like Meta's Mark Zuckerberg and Amazon's Jeff Bezos were not awarded this type of incentive-based contracts.