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Investors in the electric car maker assembled this Thursday to decide on a substantial remuneration plan for Chief Executive Elon Musk estimated at around $1 trillion. Upon approval, this plan would demonstrate market faith that the entrepreneur can guide the automaker into an era dominated by machine learning and robotics. If denied, Tesla could risk the loss of a key figure who previously established the brand equivalent with zero-emission cars.

Historic Targets and Market Capitalization

Upon reaching the formidable targets specified in the compensation plan revealed at Tesla's shareholder gathering, he could become the first-ever trillionaire. For this to happen, he must guide Tesla to a monumental $8.5 trillion in market value, which is eight times its existing market cap. Furthermore, he will be tasked to deploy millions self-driving cars and humanoid robots, while upholding the financial performance in the hundreds of billions of dollars over the next decade.

Reward System

The main goals of the remuneration structure, divided into twelve stages, outline a path for Tesla to attain its massive worth. Upon achievement, Musk would be in a position to realize gains on an further 12% of the company's stock. For this to occur, he must stay committed with the corporation for at least 7.5 years. Furthermore, he is required to contribute to forming a long-term succession plan for the enterprise he has led for over 20 years. The stock options provided by the latest pay package, combined with shares guaranteed in his earlier deal, would grant Musk with a quarter stake of Tesla's equity. By the start of November, Tesla stock was trading close to its annual peak, at around $450 each share.

Lofty Goals

Over the course of a ten-year period, Musk will be tasked to manufacture 20 million EVs to consumers, distribute 10 million active full self-driving subscriptions, create and distribute 1 million bipedal machines, and deploy 1 million autonomous taxis in revenue-generating use.

Musk will also be required to increase the corporation to $400 billion in tangible revenue for four consecutive quarters. Tesla's actual earnings for the third quarter of 2025 were $4.2 billion, a 9% decrease from the year before.

As of November, Musk's net worth was pegged at $460 billion, the highest in the planet, as reported by financial data.

Reviving a Invalidated Package

Stockholders are furthermore considering a arrangement that would compensate Musk after his previous pay package was voided by a court in Delaware. The pay plan, valued at around $56 billion, was disputed by a sole shareholder who succeeded legally. The Delaware court of chancery dismissed Musk's compensation plan on multiple instances. If shareholders approve the arrangement in the Thursday ballot, Musk is set to be paid the substantial payout irrespective of whether Tesla and Musk win an appeal of the legal matter.

Following Musk's 2018 pay package was first rescinded, he transferred Tesla's corporate home out of Delaware and into Texas. He followed suit with the rocket firm and other companies' headquarters. In the previous year, per Texas statutes, shareholders again passed the pay package.

But Delaware's so-called "court of equity" again rejected one of the most substantial CEO compensation packages in recent times. Following that unfavorable ruling, Musk used online platforms to express dissatisfaction with the state and its "activist chief judge", arguably sparking a series of corporate exits that Delaware legislators have attempted to staunch with new laws.

In evaluating whether Musk had excessive control in being granted that previous compensation plan, a noted legal scholar commented that the judge recognized that other "celebrity leaders" like Facebook's founder and the Amazon founder were not granted this sort of goal-oriented agreements.