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Investors in the electric car maker assembled this Thursday to determine on a substantial remuneration plan for CEO Elon Musk worth approximately around $1 trillion. If approved, this deal would demonstrate shareholder trust that the billionaire can guide the automaker into an period defined by artificial intelligence and advanced machinery. If rejected, Tesla could confront the exit of a key figure who previously established the company name synonymous with EVs.

Record-Breaking Milestones and Market Capitalization

Should Musk achieve the ambitious milestones detailed in the remuneration deal presented at Tesla's corporate assembly, he could be crowned the pioneering person with a trillion-dollar net worth. For this to happen, he must guide Tesla to a monumental $8.5 trillion in market capitalization, which is eight times its current valuation. Additionally, he will be tasked to roll out millions self-driving cars and advanced androids, while sustaining the corporate profits in the massive revenue figures throughout the coming ten years.

Compensation Structure

The main goals of the compensation plan, divided into a dozen phases, delineate a path for Tesla to reach its colossal valuation. Upon achievement, Musk would be in a position to benefit from an extra 12% of the corporation's shares. To be eligible, he must remain vested with the corporation for a minimum of 7.5 years. Additionally, he must help develop a corporate transition roadmap for the business he has managed for in excess of 20 years. The equity incentives provided by the updated remuneration deal, in addition to shares guaranteed in his earlier deal, would result in Musk with 25% ownership of Tesla's equity. As of early November, Tesla shares were valued close to its 52-week high, at around $450 each share.

Formidable Objectives

Over the course of a ten years, Musk will be required to manufacture 20 million EVs to buyers, distribute 10 million live FSD memberships, develop and sell 1 million advanced androids, and deploy 1 million robotaxis in revenue-generating use.

Musk will furthermore be tasked to elevate 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 year before.

By November, Musk's fortune was pegged at $460 billion, the highest in the world, based on financial data.

Reinstating a Rescinded Deal

Shareholders are also considering a proposal that would reward Musk after his previous pay package was invalidated by a judicial body in Delaware. The compensation package, valued at around $56 billion, was disputed by a sole shareholder who won his case. The Delaware judicial system dismissed Musk's compensation plan on two occasions. If shareholders approve the arrangement in Thursday's vote, Musk is likely to be granted the huge sum irrespective of whether Tesla and Musk succeed in appealing of the legal matter.

Following Musk's previous compensation plan was first rescinded, he relocated Tesla's business registration out of Delaware and into Texas. He repeated the action with SpaceX and additional corporate bases. In the previous year, according to Texas regulations, shareholders once again passed the compensation plan.

But Delaware's often referred to as "judicial body" again ruled against one of the most substantial CEO compensation packages in recent times. In the wake of that negative decision, Musk took to social media to express dissatisfaction with the jurisdiction and its "influential presiding justice", perhaps igniting a wave of business departures that Delaware legislators have sought to curb with legislation.

In evaluating whether Musk had improper sway in being given that 2018 pay package, a noted law professor remarked that the judge recognized that other "celebrity leaders" like Meta's Mark Zuckerberg and the e-commerce pioneer were not awarded this kind of goal-oriented agreements.