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Investors in the electric car maker gathered this Thursday to decide on a substantial remuneration plan for the company's leader estimated at around $1 trillion. Should it pass, this package would demonstrate market faith that the tech magnate can guide the automaker into an age shaped by machine learning and automation. If rejected, Tesla could risk the departure of a key figure who once made the company name interchangeable with EVs.

Historic Goals and Company Valuation

Should Musk achieve the lofty targets detailed in the compensation plan revealed at Tesla's shareholder gathering, he could be crowned the first-ever trillionaire. For this to happen, he must lead Tesla to a astronomical $8.5 trillion in company worth, which is 800% of its current valuation. Additionally, he will be obligated to launch countless self-driving cars and advanced androids, while maintaining the company's bottom line in the massive revenue figures in the upcoming decade.

Compensation Structure

The primary objectives of the compensation plan, split into 12 tranches, chart a trajectory for Tesla to attain its enormous worth. Upon achievement, Musk would be in a position to benefit from an additional 12% of the company's stock. For this to occur, he must maintain involvement with the corporation for a minimum of 7.5 years. Furthermore, he is required to contribute to forming a corporate transition roadmap for the organization he has headed for more than 20 years. The stock options awarded by the latest pay package, alongside shares assured in his 2018 package, would grant Musk with a quarter stake of Tesla's shares. As of early November, Tesla equity was priced approaching its yearly maximum, at roughly $450 per stock.

Formidable Objectives

During a decade, Musk will be required to produce 20 million electric vehicles to buyers, sell 10 million active full self-driving subscriptions, create and distribute 1 million humanoid robots, and launch 1 million autonomous taxis in revenue-generating use.

Musk will furthermore be obligated to elevate the corporation to $400 billion in tangible revenue for four straight quarters. Tesla's real profits for the third quarter of 2025 were $4.2 billion, a 9% decrease from the same period last year.

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

Reviving a Rescinded Plan

Stockholders are additionally considering a proposal that would reward Musk after his earlier remuneration deal was voided by a legal authority in Delaware. The remuneration deal, valued at around $56 billion, was contested by a individual investor who succeeded legally. The state court dismissed Musk's remuneration deal twice. Upon stockholder approval the arrangement in the shareholder meeting, Musk is expected to be granted the substantial payout irrespective of whether Tesla and Musk win an appeal of the lawsuit.

After Musk's previous compensation plan was initially invalidated, he transferred Tesla's corporate home to Texas from Delaware. He did the same with SpaceX and other business entities. In last year, under Texas law, shareholders again approved the compensation plan.

But Delaware's known as "judicial body" again rejected one of the most substantial CEO compensation packages in modern history. In the wake of that adverse judgment, Musk posted on his accounts to voice displeasure with the jurisdiction and its "influential presiding justice", possibly fueling a wave of business departures that Delaware officials have attempted to staunch with legislation.

In evaluating whether Musk had improper sway in being given that 2018 pay package, a prominent legal scholar commented that the court recognized that other "high-profile executives" like the Meta chief and Amazon's Jeff Bezos were not given this sort of performance-linked deals.