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Tesla shareholders gathered on Thursday to determine on a massive remuneration plan for the company's leader worth approximately close to $1 trillion. Upon approval, this plan would signal shareholder trust that the entrepreneur can guide the automaker into an age shaped by AI technology and automation. Should it fail, Tesla could risk the exit of a pioneering CEO who previously established the corporation synonymous with zero-emission cars.

Record-Breaking Milestones and Market Capitalization

Upon reaching the ambitious milestones detailed in the remuneration deal introduced at Tesla's annual meeting, he could emerge as the first-ever trillionaire. To reach this goal, he must steer Tesla to a monumental $8.5 trillion in company worth, which is 800% of its current valuation. Moreover, he will be required to roll out countless autonomous vehicles and bipedal machines, while sustaining the company's bottom line in the massive revenue figures over the next decade.

Compensation Structure

The primary objectives of the pay package, divided into a dozen phases, outline a path for Tesla to reach its massive worth. Upon achievement, Musk would be able to cash in an extra 12% of the corporation's shares. For this to occur, he must remain vested with the corporation for a minimum of 7.5 years. Furthermore, he is required to contribute to forming a corporate transition roadmap for the business he has led for over 20 years. The share grants awarded by the new compensation plan, combined with shares guaranteed in his earlier deal, would leave Musk with 25% ownership of Tesla's stock. In early November, Tesla shares were valued close to its annual peak, at approximately $450 each share.

Ambitious Targets

Over the course of a decade, Musk will be required to produce 20 million EVs to customers, market 10 million live FSD memberships, develop and sell 1 million humanoid robots, and deploy 1 million autonomous taxis in paid operations.

Musk will furthermore be required to increase the corporation to $400 billion in real profits for four straight quarters. Tesla's tangible revenue for the July-September 2025 were $4.2 billion, a 9% decrease from the same period last year.

In November, Musk's net worth was valued at $460 billion, the top in the planet, based on wealth indexes.

Reviving a Revoked Package

Stockholders are additionally reviewing a plan that would reward Musk after his 2018 compensation plan was voided by a court in Delaware. The pay plan, estimated to be $56 billion, was disputed by a sole shareholder who prevailed in court. The state court dismissed Musk's remuneration deal on multiple instances. Should investors pass the proposal in the shareholder meeting, Musk is likely to be awarded the substantial payout regardless of if Tesla and Musk overturn the ruling of the lawsuit.

Subsequent to Musk's earlier remuneration deal was first rescinded, he moved Tesla's corporate home to Texas from Delaware. He repeated the action with the rocket firm and other business entities. In 2024, under Texas law, shareholders once again voted to approve the remuneration deal.

But Delaware's often referred to as "equity court" for a second time rejected one of the most substantial CEO pay deals in recent times. In the wake of that unfavorable ruling, Musk used online platforms to show frustration with the region and its "prominent judicial figure", arguably sparking a number of company relocations that Delaware lawmakers have attempted to staunch with regulatory measures.

In considering whether Musk had excessive control in being awarded that earlier remuneration deal, a respected academic expert observed that the court recognized that other "high-profile executives" like Meta's Mark Zuckerberg and the Amazon founder were not awarded this kind of performance-linked deals.