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Investors in the electric car maker convened on Thursday to vote on a substantial remuneration plan for CEO Elon Musk estimated at close to $1 trillion. Upon approval, this package would signal shareholder trust that the entrepreneur can steer the vehicle manufacturer into an period dominated by artificial intelligence and automation. Should it fail, Tesla could risk the loss of a pioneering CEO who once made the company name equivalent with EVs.

Record-Breaking Targets and Market Capitalization

Upon reaching the lofty targets specified in the compensation plan presented at Tesla's annual meeting, he could emerge as the first-ever trillionaire. To accomplish this, he must guide Tesla to a astronomical $8.5 trillion in market capitalization, which is 800% of its present worth. Furthermore, he will be tasked to deploy numerous self-driving cars and humanoid robots, while sustaining the corporate profits in the massive revenue figures in the upcoming decade.

Compensation Structure

The primary objectives of the compensation plan, divided into twelve stages, chart a path for Tesla to attain its enormous worth. If successful, Musk would be able to cash in an additional 12% of the firm's equity. To be eligible, he must stay committed with the company for a minimum of 7.5 years. Additionally, he must assist in creating a corporate transition roadmap for the organization he has headed for more than 20 years. The stock options awarded by the new compensation plan, alongside shares promised in his earlier deal, would leave Musk with 25% ownership of Tesla's equity. As of early November, Tesla stock was trading near its annual peak, at around $450 each share.

Ambitious Targets

During a decade, Musk will be tasked to manufacture 20 million electric vehicles to buyers, distribute 10 million operational autonomous driving plans, produce and launch 1 million advanced androids, and deploy 1 million robotaxis in revenue-generating use.

Musk will furthermore be obligated to increase the company to $400 billion in actual earnings for four straight quarters. Tesla's tangible revenue for the Q3 2025 were $4.2 billion, 9 percent lower from the year before.

By November, Musk's net worth was estimated at $460 billion, the leading in the world, as reported by financial data.

Reviving a Invalidated Deal

Shareholders are additionally reviewing a plan that would compensate Musk after his previous pay package was overturned by a legal authority in Delaware. The compensation package, valued at around $56 billion, was challenged by a single stockholder who won his case. The Delaware court of chancery denied Musk's compensation plan twice. If shareholders approve the plan in the Thursday ballot, Musk is expected to be awarded the huge sum whether or not Tesla and Musk overturn the ruling of the case.

Following Musk's 2018 pay package was originally overturned, he relocated Tesla's business registration to Texas from Delaware. He followed suit with his aerospace company and additional corporate bases. In last year, under Texas law, shareholders again passed the remuneration deal.

But Delaware's known as "equity court" again ruled against one of the most substantial CEO payouts in contemporary business. In the wake of that unfavorable ruling, Musk took to social media to voice displeasure with the region and its "influential presiding justice", arguably fueling a number of company relocations that Delaware lawmakers have attempted to staunch with new laws.

In reviewing whether Musk had undue influence in being given that earlier remuneration deal, a prominent law professor observed that the judge acknowledged that other "superstar CEOs" like Meta's Mark Zuckerberg and the Amazon founder were not given this type of goal-oriented agreements.