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Investors in the electric car maker gathered this Thursday to vote on a substantial remuneration plan for CEO Elon Musk worth approximately around $1 trillion. Should it pass, this deal would showcase market faith that the tech magnate can steer the vehicle manufacturer into an era dominated by AI technology and advanced machinery. If rejected, Tesla could risk the loss of a key figure who previously established the brand equivalent with electric vehicles.

Historic Milestones and Company Valuation

Upon reaching the lofty milestones detailed in the compensation plan presented at Tesla's shareholder gathering, he could be crowned the world's first person with a trillion-dollar net worth. To reach this goal, he must steer Tesla to a staggering $8.5 trillion in company worth, which is an eightfold increase its present worth. Moreover, he will be tasked to roll out millions self-driving cars and humanoid robots, while sustaining the company's bottom line in the hundreds of billions in the upcoming decade.

Payment Breakdown

The main goals of the pay package, divided into a dozen phases, delineate a path for Tesla to reach its enormous market capitalization. Upon achievement, Musk would be eligible to cash in an further 12% of the company's stock. To qualify, he must remain vested with the corporation for no less than 7.5 years. Additionally, he must assist in creating a corporate transition roadmap for the business he has led for in excess of 20 years. The share grants awarded by the updated remuneration deal, alongside shares promised in his earlier deal, would result in Musk with 25 percent equity of Tesla's shares. As of early November, Tesla shares were valued approaching its annual peak, at roughly $450 per stock.

Formidable Objectives

During a ten years, Musk will be tasked to manufacture 20 million zero-emission cars to customers, sell 10 million operational autonomous driving plans, produce and launch 1 million advanced androids, and introduce 1 million autonomous taxis in paid operations.

Musk will furthermore be required to elevate the company to $400 billion in real profits for a full year. Tesla's real profits for the Q3 2025 were $4.2 billion, 9 percent lower from the previous year.

In November, Musk's net worth was pegged at $460 billion, the leading in the world, according to wealth indexes.

Reviving a Revoked Deal

Stockholders are furthermore evaluating a proposal that would compensate Musk after his previous pay package was invalidated by a court in Delaware. The compensation package, estimated to be $56 billion, was disputed by a single stockholder who prevailed in court. The Delaware court of chancery denied Musk's compensation plan on two occasions. Should investors pass the plan in the Thursday ballot, Musk is expected to be paid the massive amount whether or not Tesla and Musk succeed in appealing of the lawsuit.

Following Musk's 2018 pay package was first rescinded, he moved Tesla's legal headquarters to Texas from Delaware. He followed suit with SpaceX and other companies' headquarters. In 2024, according to Texas regulations, shareholders for a second time passed the compensation plan.

But Delaware's so-called "equity court" for a second time denied one of the largest CEO compensation packages in recent times. After that unfavorable ruling, Musk took to social media to voice displeasure with the region and its "prominent judicial figure", arguably sparking a wave of business departures that Delaware officials have tried to stop with legislation.

In evaluating whether Musk had improper sway in being granted that earlier remuneration deal, a respected legal scholar remarked that the judge noted that other "celebrity leaders" like Facebook's founder and the Amazon founder were not awarded this sort of performance-linked deals.