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Investors in the electric car maker gathered on Thursday to determine on a enormous remuneration plan for the company's leader valued at nearly $1 trillion. Upon approval, this deal would demonstrate shareholder trust that the tech magnate can steer the vehicle manufacturer into an period defined by machine learning and automation. If denied, Tesla could potentially face the exit of a pioneering CEO who historically built the company name synonymous with EVs.

Historic Targets and Market Capitalization

If the CEO meets the lofty milestones specified in the remuneration deal revealed at Tesla's annual meeting, he could be crowned the first-ever trillionaire. To reach this goal, he must steer Tesla to a astronomical $8.5 trillion in market capitalization, which is an eightfold increase its existing market cap. Moreover, he will be obligated to launch numerous autonomous vehicles and humanoid robots, while upholding the corporate profits in the massive revenue figures over the next decade.

Reward System

The primary objectives of the remuneration structure, split into 12 tranches, outline a path for Tesla to achieve its enormous worth. Upon achievement, Musk would be able to benefit from an extra 12% of the company's stock. To qualify, he must remain vested with the company for a minimum of 7.5 years. Additionally, he must contribute to forming a corporate transition roadmap for the organization he has headed for over 20 years. The share grants awarded by the updated remuneration deal, alongside shares guaranteed in his 2018 package, would grant Musk with 25% ownership of Tesla's stock. As of early November, Tesla shares were valued near its yearly maximum, at approximately $450 each share.

Ambitious Targets

Over the course of a ten-year period, Musk will be required to deliver 20 million zero-emission cars to customers, market 10 million active full self-driving subscriptions, develop and sell 1 million humanoid robots, and introduce 1 million autonomous taxis in paid operations.

Musk will furthermore be required to increase the company to $400 billion in real profits for four straight quarters. Tesla's actual earnings for the third quarter of 2025 were $4.2 billion, down 9% from the previous year.

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

Reviving a Rescinded Package

Stockholders are furthermore reviewing a arrangement that would compensate Musk after his previous pay package was invalidated by a judicial body in Delaware. The pay plan, valued at around $56 billion, was challenged by a single stockholder who prevailed in court. The state court denied Musk's pay package on multiple instances. Upon stockholder approval the arrangement in the shareholder meeting, Musk is set to be granted the substantial payout whether or not Tesla and Musk overturn the ruling of the lawsuit.

Subsequent to Musk's previous compensation plan was originally overturned, he relocated Tesla's legal headquarters out of Delaware and into Texas. He did the same with the rocket firm and other companies' headquarters. In the previous year, under Texas law, shareholders for a second time approved the compensation plan.

But Delaware's often referred to as "judicial body" again ruled against one of the most substantial CEO compensation packages in contemporary business. In the wake of that adverse judgment, Musk used online platforms to express dissatisfaction with the state and its "prominent judicial figure", perhaps fueling a wave of business departures that Delaware officials have tried to stop with legislation.

In evaluating whether Musk had improper sway in being awarded that earlier remuneration deal, a noted legal scholar remarked that the judicial authority recognized that other "superstar CEOs" like Meta's Mark Zuckerberg and the e-commerce pioneer were not awarded this kind of goal-oriented agreements.