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Investors in the electric car maker convened this Thursday to vote on a massive remuneration plan for the company's leader estimated at close to $1 trillion. Should it pass, this deal would showcase market faith that the billionaire can guide the car company into an age shaped by artificial intelligence and robotics. If denied, Tesla could risk the exit of a pioneering CEO who historically built the corporation equivalent with EVs.

Record-Breaking Targets and Market Capitalization

Should Musk achieve the formidable objectives specified in the pay package introduced at Tesla's shareholder gathering, he could be crowned the world's first trillionaire. For this to happen, he must lead Tesla to a monumental $8.5 trillion in market value, which is 800% of its current valuation. Additionally, he will be tasked to launch numerous autonomous vehicles and humanoid robots, while maintaining the financial performance in the massive revenue figures throughout the coming ten years.

Payment Breakdown

The key aims of the pay package, split into a dozen phases, delineate a trajectory for Tesla to attain its enormous worth. Should targets be met, Musk would be eligible to cash in an further 12% of the corporation's shares. For this to occur, he must stay committed with the corporation for a minimum of 7.5 years. Furthermore, he is required to contribute to forming a long-term succession plan for the business he has led for in excess of 20 years. The equity incentives offered by the new compensation plan, alongside shares assured in his earlier deal, would leave Musk with 25 percent equity of Tesla's shares. In early November, Tesla stock was trading close to its annual peak, at roughly $450 per share.

Ambitious Targets

Over the course of a ten years, Musk will be tasked to produce 20 million EVs to customers, sell 10 million live FSD memberships, produce and launch 1 million bipedal machines, and introduce 1 million self-driving cabs in commercial service.

Musk will additionally be tasked to bring the firm to $400 billion in actual earnings for four consecutive quarters. Tesla's real profits for the Q3 2025 were $4.2 billion, a 9% decrease from the year before.

By November, Musk's personal wealth was valued at $460 billion, the top in the globe, according to market tracking.

Restoring a Revoked Plan

Stockholders are furthermore reviewing a plan that would reward Musk after his previous pay package was voided by a judicial body in Delaware. The pay plan, valued at around $56 billion, was contested by a single stockholder who prevailed in court. The state court dismissed Musk's compensation plan on multiple instances. Upon stockholder approval the arrangement in the shareholder meeting, Musk is set to be paid the massive amount regardless of if Tesla and Musk succeed in appealing of the lawsuit.

Subsequent to Musk's earlier remuneration deal was originally overturned, he relocated Tesla's corporate home from Delaware to Texas. He did the same with SpaceX and other companies' headquarters. In the previous year, under Texas law, shareholders again passed the remuneration deal.

But Delaware's often referred to as "court of equity" for a second time ruled against one of the most substantial CEO payouts in modern history. In the wake of that unfavorable ruling, Musk used online platforms to express dissatisfaction with the jurisdiction and its "prominent judicial figure", possibly sparking a series of corporate exits that Delaware officials have sought to curb with regulatory measures.

In considering whether Musk had improper sway in being granted that previous compensation plan, a noted law professor commented that the court noted that other "high-profile executives" like Facebook's founder and the Amazon founder were not given this sort of performance-linked deals.