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Investors in the electric car maker gathered on Thursday to vote on a enormous remuneration plan for CEO Elon Musk valued at nearly $1 trillion. Upon approval, this package would demonstrate investor confidence that the billionaire can guide the automaker into an age defined by artificial intelligence and automation. If denied, Tesla could confront the loss of a key figure who previously established the company name synonymous with EVs.

Record-Breaking Targets and Market Capitalization

If the CEO meets the formidable milestones detailed in the remuneration deal introduced at Tesla's shareholder gathering, he could be crowned the first-ever person with a trillion-dollar net worth. For this to happen, he must guide Tesla to a staggering $8.5 trillion in market capitalization, which is 800% of its present worth. Furthermore, he will be obligated to roll out numerous driverless automobiles and bipedal machines, while upholding the corporate profits in the hundreds of billions of dollars over the next decade.

Payment Breakdown

The primary objectives of the compensation plan, split into twelve stages, outline a path for Tesla to achieve its massive market capitalization. Upon achievement, Musk would be able 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 assist in creating a corporate transition roadmap for the organization he has managed for more than 20 years. The equity incentives offered by the new compensation plan, alongside shares guaranteed in his previous compensation plan, would grant Musk with a quarter stake of Tesla's stock. As of early November, Tesla stock was trading near its yearly maximum, at roughly $450 per stock.

Formidable Objectives

During a decade, Musk will be obligated to produce 20 million EVs to consumers, sell 10 million live FSD memberships, create and distribute 1 million bipedal machines, and launch 1 million autonomous taxis in commercial service.

Musk will additionally be tasked to bring the company to $400 billion in tangible revenue for a full year. Tesla's tangible revenue for the July-September 2025 were $4.2 billion, 9 percent lower from the previous year.

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

Reinstating a Rescinded Package

Shareholders are additionally evaluating a plan that would remunerate Musk after his 2018 compensation plan was invalidated by a court in Delaware. The compensation package, worth an estimated $56 billion, was contested by a sole shareholder who succeeded legally. The state court rejected Musk's remuneration deal on multiple instances. If shareholders approve the arrangement in Thursday's vote, Musk is expected to be paid the substantial payout irrespective of whether Tesla and Musk overturn the ruling of the lawsuit.

After Musk's 2018 pay package was initially invalidated, he moved Tesla's legal headquarters to Texas from Delaware. He did the same with his aerospace company and other companies' headquarters. In the previous year, under Texas law, shareholders once again approved the compensation plan.

But Delaware's known as "judicial body" again rejected one of the largest CEO pay deals in modern history. Following that negative decision, Musk posted on his accounts to show frustration with the state and its "prominent judicial figure", arguably igniting a wave of business departures that Delaware officials have tried to stop with legislation.

In reviewing whether Musk had undue influence in being awarded that previous compensation plan, a respected law professor commented that the court acknowledged that other "high-profile executives" like the Meta chief and Amazon's Jeff Bezos were not awarded this sort of performance-linked deals.