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Tesla shareholders assembled on Thursday to decide on a massive remuneration plan for the company's leader estimated at around $1 trillion. If approved, this package would signal investor confidence that the tech magnate can lead the car company into an period shaped by AI technology and automation. If denied, Tesla could potentially face the departure of a pioneering CEO who once made the brand equivalent with EVs.

Record-Breaking Targets and Company Valuation

If the CEO meets the lofty targets outlined in the compensation plan introduced at Tesla's annual meeting, he could emerge as the world's first person with a trillion-dollar net worth. To accomplish this, he must steer Tesla to a staggering $8.5 trillion in company worth, which is eight times its current valuation. Furthermore, he will be obligated to launch countless autonomous vehicles and humanoid robots, while maintaining the company's bottom line in the hundreds of billions of dollars over the next decade.

Payment Breakdown

The main goals of the compensation plan, split into a dozen phases, delineate a trajectory for Tesla to attain its enormous valuation. If successful, Musk would be in a position to cash in an further 12% of the firm's equity. To qualify, he must stay committed with the firm for no less than 7.5 years. Additionally, he must contribute to forming a corporate transition roadmap for the organization he has managed for over 20 years. The stock options offered by the updated remuneration deal, in addition to shares promised in his 2018 package, would result in Musk with a quarter stake of Tesla's shares. By the start of November, Tesla equity was priced close to its yearly maximum, at approximately $450 per share.

Ambitious Targets

During a ten-year period, Musk will be obligated to manufacture 20 million electric vehicles to consumers, market 10 million operational autonomous driving plans, develop and sell 1 million bipedal machines, and introduce 1 million robotaxis in commercial service.

Musk will furthermore be obligated to elevate the corporation to $400 billion in actual earnings for a full year. Tesla's actual earnings for the third quarter of 2025 were $4.2 billion, a 9% decrease from the same period last year.

In November, Musk's personal wealth was estimated at $460 billion, the highest in the planet, according to market tracking.

Reinstating a Rescinded Plan

Shareholders are furthermore reviewing a proposal that would compensate Musk after his previous pay package was overturned by a court in Delaware. The compensation package, valued at around $56 billion, was challenged by a sole shareholder who succeeded legally. The Delaware judicial system denied Musk's pay package twice. Should investors pass the plan in the Thursday ballot, Musk is likely to be paid the massive amount irrespective of whether Tesla and Musk succeed in appealing of the case.

After Musk's previous compensation plan was first rescinded, he relocated Tesla's business registration to Texas from Delaware. He repeated the action with his aerospace company and additional corporate bases. In 2024, per Texas statutes, shareholders once again approved the pay package.

But Delaware's known as "judicial body" for a second time rejected one of the most substantial CEO pay deals in modern history. Following that negative decision, Musk posted on his accounts to show frustration with the state and its "prominent judicial figure", arguably igniting a series of corporate exits that Delaware officials have tried to stop with new laws.

In considering whether Musk had excessive control in being granted that earlier remuneration deal, a noted legal scholar remarked that the court noted that other "superstar CEOs" like the Meta chief and the e-commerce pioneer were not given this type of goal-oriented agreements.