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Investors in the electric car maker gathered on Thursday to determine on a substantial remuneration plan for Chief Executive Elon Musk worth approximately around $1 trillion. If approved, this plan would demonstrate market faith that the billionaire can steer the automaker into an period shaped by AI technology and robotics. Should it fail, Tesla could confront the departure of a visionary leader who previously established the company name interchangeable with EVs.

Historic Targets and Market Capitalization

Should Musk achieve the lofty objectives detailed in the remuneration deal presented at Tesla's corporate assembly, he could become the first-ever trillionaire. To accomplish this, he must lead Tesla to a monumental $8.5 trillion in company worth, which is 800% of its present worth. Moreover, he will be tasked to launch countless self-driving cars and advanced androids, while maintaining the company's bottom line in the hundreds of billions of dollars throughout the coming ten years.

Reward System

The primary objectives of the pay package, divided into twelve stages, delineate a trajectory for Tesla to reach its enormous valuation. If successful, Musk would be able to benefit from an extra 12% of the company's stock. To qualify, he must remain vested with the firm for a minimum of 7.5 years. Additionally, he must assist in creating a long-term succession plan for the business he has headed for over 20 years. The share grants offered by the new compensation plan, in addition to shares promised in his 2018 package, would grant Musk with 25% ownership of Tesla's shares. In early November, Tesla equity was priced close to its yearly maximum, at around $450 per stock.

Ambitious Targets

Over the course of a decade, Musk will be obligated to deliver 20 million electric vehicles to customers, market 10 million live FSD memberships, produce and launch 1 million bipedal machines, and deploy 1 million autonomous taxis in commercial service.

Musk will also be required to bring the company to $400 billion in real profits for four consecutive quarters. Tesla's actual earnings for the Q3 2025 were $4.2 billion, 9 percent lower from the year before.

In November, Musk's fortune was pegged at $460 billion, the top in the globe, based on financial data.

Reviving a Invalidated Plan

Shareholders are additionally reviewing a arrangement that would compensate Musk after his 2018 compensation plan was invalidated by a legal authority in Delaware. The pay plan, valued at around $56 billion, was disputed by a single stockholder who prevailed in court. The Delaware judicial system rejected Musk's remuneration deal twice. If shareholders approve the proposal in the shareholder meeting, Musk is set to be awarded the huge sum irrespective of whether Tesla and Musk win an appeal of the legal matter.

Following Musk's previous compensation plan was originally overturned, he relocated Tesla's corporate home out of Delaware and into Texas. He repeated the action with the rocket firm and other business entities. In 2024, per Texas statutes, shareholders for a second time voted to approve the compensation plan.

But Delaware's so-called "equity court" once again ruled against one of the biggest CEO pay deals in contemporary business. After that negative decision, Musk took to social media to show frustration with the state and its "prominent judicial figure", arguably igniting a wave of business departures that Delaware lawmakers have tried to stop with new laws.

In considering whether Musk had undue influence in being granted that earlier remuneration deal, a respected legal scholar remarked that the judge recognized that other "celebrity leaders" like the Meta chief and Amazon's Jeff Bezos were not granted this sort of incentive-based contracts.