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Tesla shareholders assembled on Thursday to decide on a massive remuneration plan for the company's leader estimated at nearly $1 trillion. If approved, this deal would demonstrate investor confidence that the tech magnate can lead the vehicle manufacturer into an age shaped by machine learning and automation. If denied, Tesla could potentially face the loss of a pioneering CEO who once made the brand equivalent with EVs.

Historic Goals and Company Valuation

Upon reaching the formidable targets specified in the pay package presented 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 guide Tesla to a staggering $8.5 trillion in company worth, which is 800% of its present worth. Furthermore, he will be tasked to roll out millions self-driving cars and bipedal machines, while maintaining the financial performance in the hundreds of billions in the upcoming decade.

Reward System

The main goals of the compensation plan, organized into 12 tranches, delineate a trajectory for Tesla to attain its enormous market capitalization. Upon achievement, Musk would be able to benefit from an further 12% of the firm's equity. To qualify, he must maintain involvement with the firm for no less than 7.5 years. Furthermore, he is required to contribute to forming a corporate transition roadmap for the enterprise he has led for over 20 years. The stock options offered by the latest pay package, combined with shares guaranteed in his earlier deal, would result in Musk with 25 percent equity of Tesla's shares. As of early November, Tesla equity was priced approaching its 52-week high, at approximately $450 each share.

Lofty Goals

Over the course of a ten years, Musk will be tasked to deliver 20 million electric vehicles to buyers, sell 10 million active full self-driving subscriptions, produce and launch 1 million humanoid robots, and deploy 1 million robotaxis in revenue-generating use.

Musk will furthermore be required to bring the corporation to $400 billion in real profits for a full year. Tesla's actual earnings for the Q3 2025 were $4.2 billion, a 9% decrease from the year before.

As of November, Musk's fortune was valued at $460 billion, the top in the world, based on financial data.

Reinstating a Invalidated Package

Shareholders are also evaluating a proposal that would remunerate Musk after his 2018 compensation plan was overturned by a court in Delaware. The compensation package, estimated to be $56 billion, was disputed by a single stockholder who won his case. The Delaware judicial system rejected Musk's compensation plan twice. Upon stockholder approval the plan in Thursday's vote, Musk is likely to be granted the massive amount regardless of if Tesla and Musk overturn the ruling of the lawsuit.

Subsequent to Musk's previous compensation plan was initially invalidated, he relocated Tesla's legal headquarters from Delaware to Texas. He did the same with his aerospace company and other companies' headquarters. In last year, per Texas statutes, shareholders again voted to approve the pay package.

But Delaware's so-called "judicial body" for a second time rejected one of the most substantial CEO compensation packages in modern history. In the wake of that unfavorable ruling, Musk used online platforms to voice displeasure with the jurisdiction and its "activist chief judge", perhaps sparking a number of company relocations that Delaware legislators have attempted to staunch with new laws.

In reviewing whether Musk had undue influence in being granted that earlier remuneration deal, a respected academic expert commented that the court acknowledged that other "celebrity leaders" like Facebook's founder and the e-commerce pioneer were not given this type of goal-oriented agreements.