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Tesla shareholders assembled on Thursday to decide on a massive remuneration plan for CEO Elon Musk worth approximately around $1 trillion. Upon approval, this plan would demonstrate market faith that the tech magnate can lead the automaker into an age shaped by AI technology and automation. Should it fail, Tesla could risk the departure of a pioneering CEO who once made the brand equivalent with electric vehicles.

Record-Breaking Goals and Market Capitalization

Upon reaching the formidable milestones detailed in the pay package presented at Tesla's shareholder gathering, he could become the world's first trillionaire. For this to happen, he must lead Tesla to a staggering $8.5 trillion in company worth, which is an eightfold increase its current valuation. Furthermore, he will be tasked to launch countless autonomous vehicles and humanoid robots, while sustaining the company's bottom line in the hundreds of billions of dollars throughout the coming ten years.

Compensation Structure

The main goals of the remuneration structure, split into a dozen phases, outline a roadmap for Tesla to reach its massive valuation. Upon achievement, Musk would be able to benefit from an extra 12% of the company's stock. For this to occur, he must maintain involvement with the company for a minimum of 7.5 years. He will also contribute to forming a future leadership strategy for the enterprise he has led for over 20 years. The stock options provided by the new compensation plan, combined with shares assured in his earlier deal, would leave Musk with 25 percent equity of Tesla's stock. By the start of November, Tesla equity was priced near its yearly maximum, at approximately $450 per share.

Formidable Objectives

Throughout a ten years, Musk will be tasked to produce 20 million electric vehicles to consumers, sell 10 million active full self-driving subscriptions, develop and sell 1 million advanced androids, and introduce 1 million robotaxis in commercial service.

Musk will also be required to bring the firm to $400 billion in real profits for four straight quarters. Tesla's real profits for the Q3 2025 were $4.2 billion, down 9% from the previous year.

In November, Musk's fortune was valued at $460 billion, the top in the world, as reported by financial data.

Restoring a Invalidated Plan

Investors are also considering a plan that would remunerate Musk after his earlier remuneration deal was voided by a court in Delaware. The remuneration deal, valued at around $56 billion, was challenged by a individual investor who prevailed in court. The state court rejected Musk's remuneration deal on two occasions. Should investors pass the proposal in the Thursday ballot, Musk is set to be granted the massive amount regardless of if Tesla and Musk overturn the ruling of the case.

Subsequent to Musk's 2018 pay package was initially invalidated, he relocated Tesla's business registration from Delaware to Texas. He repeated the action with the rocket firm and other companies' headquarters. In the previous year, under Texas law, shareholders once again passed the compensation plan.

But Delaware's often referred to as "equity court" again rejected one of the largest CEO payouts in modern history. After that adverse judgment, Musk took to social media to show frustration with the state and its "activist chief judge", perhaps sparking a series of corporate exits that Delaware legislators have tried to stop with legislation.

In reviewing whether Musk had excessive control in being granted that 2018 pay package, a respected legal scholar observed that the judge recognized that other "celebrity leaders" like Meta's Mark Zuckerberg and the Amazon founder were not given this kind of goal-oriented agreements.