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Investors in the electric car maker convened on Thursday to decide on a massive remuneration plan for CEO Elon Musk valued at nearly $1 trillion. If approved, this plan would showcase market faith that the entrepreneur can guide the automaker into an era dominated by AI technology and automation. If rejected, Tesla could potentially face the loss of a visionary leader who once made the company name synonymous with EVs.

Record-Breaking Goals and Company Valuation

Should Musk achieve the lofty milestones outlined in the compensation plan revealed at Tesla's corporate assembly, he could emerge as the first-ever person with a trillion-dollar net worth. To accomplish this, he must lead Tesla to a astronomical $8.5 trillion in market value, which is eight times its present worth. Furthermore, he will be required to roll out countless driverless automobiles and bipedal machines, while sustaining the corporate profits in the massive revenue figures throughout the coming ten years.

Compensation Structure

The key aims of the compensation plan, split into 12 tranches, delineate a path for Tesla to attain its massive market capitalization. Upon achievement, Musk would be able to benefit from an further 12% of the corporation's shares. For this to occur, he must maintain involvement with the company for at least 7.5 years. Additionally, he must assist in creating a corporate transition roadmap for the organization he has led for in excess of 20 years. The stock options awarded by the updated remuneration deal, alongside shares guaranteed in his previous compensation plan, would grant Musk with 25% ownership of Tesla's shares. In early November, Tesla equity was priced close to its yearly maximum, at approximately $450 per share.

Lofty Goals

Over the course of a ten years, Musk will be tasked to manufacture 20 million electric vehicles to consumers, market 10 million operational autonomous driving plans, produce and launch 1 million humanoid robots, and launch 1 million robotaxis in commercial service.

Musk will also be obligated to elevate the corporation to $400 billion in actual earnings for four straight quarters. Tesla's real profits for the Q3 2025 were $4.2 billion, a 9% decrease from the same period last year.

As of November, Musk's personal wealth was estimated at $460 billion, the highest in the globe, according to financial data.

Restoring a Revoked Package

Investors are also considering a proposal that would reward Musk after his 2018 compensation plan was invalidated by a court in Delaware. The remuneration deal, valued at around $56 billion, was disputed by a individual investor who won his case. The Delaware judicial system dismissed Musk's compensation plan on multiple instances. Upon stockholder approval the proposal in the shareholder meeting, Musk is likely to be awarded the substantial payout irrespective of whether Tesla and Musk overturn the ruling of the case.

Subsequent to Musk's previous compensation plan was initially invalidated, he moved Tesla's business registration out of Delaware and into Texas. He repeated the action with the rocket firm and other companies' headquarters. In last year, under Texas law, shareholders once again voted to approve the remuneration deal.

But Delaware's so-called "judicial body" for a second time denied one of the biggest CEO payouts in modern history. Following that negative decision, Musk used online platforms to express dissatisfaction with the state and its "activist chief judge", possibly sparking a number of company relocations that Delaware lawmakers have attempted to staunch with legislation.

In reviewing whether Musk had improper sway in being granted that earlier remuneration deal, a respected academic expert remarked that the judge acknowledged that other "high-profile executives" like the Meta chief and the e-commerce pioneer were not granted this type of incentive-based contracts.