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Tesla shareholders gathered this Thursday to decide on a substantial compensation package for CEO Elon Musk worth approximately nearly $1 trillion. If approved, this package would showcase market faith that the billionaire can lead the car company into an era defined by machine learning and automation. If denied, Tesla could risk the loss of a pioneering CEO who once made the corporation equivalent with EVs.

Record-Breaking Milestones and Company Valuation

If the CEO meets the formidable objectives outlined in the remuneration deal presented at Tesla's corporate assembly, he could be crowned the pioneering person with a trillion-dollar net worth. To reach this goal, he must steer Tesla to a staggering $8.5 trillion in market value, which is 800% of its existing market cap. Additionally, he will be required to launch countless self-driving cars and humanoid robots, while maintaining the financial performance in the hundreds of billions throughout the coming ten years.

Reward System

The key aims of the pay package, organized into 12 tranches, delineate a roadmap for Tesla to reach its enormous market capitalization. Should targets be met, Musk would be able to realize gains on an extra 12% of the corporation's shares. To be eligible, he must maintain involvement with the firm for a minimum of 7.5 years. Additionally, he must assist in creating a long-term succession plan for the enterprise he has managed for more than 20 years. The stock options awarded by the latest pay package, alongside shares promised in his previous compensation plan, would result in Musk with a quarter stake of Tesla's stock. As of early November, Tesla stock was trading close to its 52-week high, at approximately $450 each share.

Ambitious Targets

Throughout a ten-year period, Musk will be required to deliver 20 million EVs to buyers, market 10 million live FSD memberships, produce and launch 1 million advanced androids, and launch 1 million robotaxis in paid operations.

Musk will also be obligated to bring the corporation to $400 billion in tangible revenue for four consecutive quarters. Tesla's actual earnings for the Q3 2025 were $4.2 billion, 9 percent lower from the same period last year.

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

Reviving a Invalidated Plan

Investors are additionally evaluating a plan that would compensate Musk after his earlier remuneration deal was overturned by a judicial body in Delaware. The remuneration deal, worth an estimated $56 billion, was challenged by a sole shareholder who won his case. The state court rejected Musk's compensation plan twice. If shareholders approve the arrangement in the Thursday ballot, Musk is set to be awarded the huge sum whether or not Tesla and Musk win an appeal of the case.

Subsequent to Musk's 2018 pay package was initially invalidated, he transferred Tesla's legal headquarters from Delaware to Texas. He repeated the action with his aerospace company and other companies' headquarters. In the previous year, under Texas law, shareholders for a second time approved the remuneration deal.

But Delaware's so-called "court of equity" once again rejected one of the biggest CEO payouts in contemporary business. After that adverse judgment, Musk took to social media to show frustration with the state and its "influential presiding justice", perhaps igniting a series of corporate exits that Delaware legislators have attempted to staunch with regulatory measures.

In reviewing whether Musk had excessive control in being given that 2018 pay package, a prominent law professor commented that the court noted that other "superstar CEOs" like the Meta chief and the e-commerce pioneer were not given this type of incentive-based contracts.