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Investors in the electric car maker gathered on Thursday to determine on a enormous remuneration plan for the company's leader estimated at close to $1 trillion. If approved, this plan would signal investor confidence that the tech magnate can lead the automaker into an era dominated by machine learning and automation. If denied, Tesla could confront the exit of a pioneering CEO who previously established the brand interchangeable with zero-emission cars.

Record-Breaking Milestones and Company Valuation

If the CEO meets the ambitious milestones detailed in the remuneration deal revealed at Tesla's shareholder gathering, he could become the world's first person with a trillion-dollar net worth. For this to happen, he must lead Tesla to a staggering $8.5 trillion in market capitalization, which is an eightfold increase its present worth. Furthermore, he will be obligated to launch numerous self-driving cars and advanced androids, while sustaining the financial performance in the hundreds of billions of dollars in the upcoming decade.

Reward System

The primary objectives of the remuneration structure, divided into twelve stages, delineate a roadmap for Tesla to reach its enormous valuation. Upon achievement, Musk would be able to cash in an extra 12% of the firm's equity. To qualify, he must maintain involvement with the company for at least 7.5 years. He will also contribute to forming a long-term succession plan for the business he has headed for more than 20 years. The equity incentives provided by the new compensation plan, alongside shares guaranteed in his previous compensation plan, would result in Musk with 25% ownership of Tesla's stock. As of early November, Tesla shares were valued approaching its annual peak, at approximately $450 each share.

Formidable Objectives

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

Musk will also be obligated to bring the firm to $400 billion in tangible revenue for a full year. Tesla's real profits for the Q3 2025 were $4.2 billion, a 9% decrease from the year before.

As of November, Musk's net worth was valued at $460 billion, the leading in the world, according to market tracking.

Restoring a Revoked Plan

Shareholders are additionally evaluating a proposal that would compensate Musk after his earlier remuneration deal was overturned by a legal authority in Delaware. The pay plan, worth an estimated $56 billion, was disputed by a sole shareholder who won his case. The Delaware court of chancery rejected Musk's pay package on two occasions. If shareholders approve the plan in the Thursday ballot, Musk is likely to be awarded the massive amount regardless of if Tesla and Musk win an appeal of the case.

Subsequent to Musk's earlier remuneration deal was originally overturned, he transferred Tesla's business registration to Texas from Delaware. He followed suit with the rocket firm and additional corporate bases. In last year, per Texas statutes, shareholders for a second time passed the compensation plan.

But Delaware's so-called "judicial body" for a second time ruled against one of the largest CEO payouts in recent times. After that unfavorable ruling, Musk used online platforms to express dissatisfaction with the region and its "prominent judicial figure", arguably fueling a series of corporate exits that Delaware legislators have sought to curb with regulatory measures.

In evaluating whether Musk had excessive control in being given that earlier remuneration deal, a prominent legal scholar commented that the court acknowledged that other "superstar CEOs" like Facebook's founder and the e-commerce pioneer were not granted this type of goal-oriented agreements.