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Tesla shareholders gathered on Thursday to vote on a enormous remuneration plan for CEO Elon Musk worth approximately close to $1 trillion. If approved, this deal would signal shareholder trust that the tech magnate can steer the automaker into an era shaped by machine learning and automation. If denied, Tesla could potentially face the loss of a visionary leader who previously established the corporation synonymous with EVs.

Record-Breaking Milestones and Market Capitalization

Should Musk achieve the formidable objectives outlined in the compensation plan introduced at Tesla's shareholder gathering, he could emerge as the world's first person with a trillion-dollar net worth. To accomplish this, he must steer Tesla to a astronomical $8.5 trillion in market capitalization, which is an eightfold increase its current valuation. Furthermore, he will be obligated to deploy millions driverless automobiles and advanced androids, while upholding the company's bottom line in the massive revenue figures throughout the coming ten years.

Reward System

The key aims of the pay package, divided into twelve stages, outline a roadmap for Tesla to achieve its colossal valuation. If successful, Musk would be in a position to benefit from an additional 12% of the company's stock. For this to occur, he must stay committed with the corporation for no less than 7.5 years. Furthermore, he is required to assist in creating a long-term succession plan for the enterprise he has led for more than 20 years. The share grants offered by the latest pay package, in addition to shares promised in his earlier deal, would result in Musk with 25 percent equity of Tesla's shares. In early November, Tesla equity was priced near its 52-week high, at around $450 per stock.

Lofty Goals

Over the course of a decade, Musk will be required to deliver 20 million zero-emission cars to buyers, sell 10 million live FSD memberships, create and distribute 1 million bipedal machines, and launch 1 million self-driving cabs in paid operations.

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 July-September 2025 were $4.2 billion, a 9% decrease from the year before.

As of November, Musk's fortune was pegged at $460 billion, the top in the globe, based on market tracking.

Reviving a Invalidated Plan

Stockholders are also considering a arrangement that would compensate Musk after his previous pay package was voided by a court in Delaware. The remuneration deal, worth an estimated $56 billion, was challenged by a sole shareholder who succeeded legally. The state court denied Musk's remuneration deal twice. If shareholders approve the proposal in the shareholder meeting, Musk is set to be awarded the substantial payout regardless of if Tesla and Musk overturn the ruling of the lawsuit.

Subsequent to Musk's 2018 pay package was first rescinded, he transferred Tesla's corporate home out of Delaware and into Texas. He did the same with his aerospace company and other companies' headquarters. In 2024, under Texas law, shareholders once again approved the remuneration deal.

But Delaware's known as "equity court" once again denied one of the most substantial CEO compensation packages in modern history. After that unfavorable ruling, Musk took to social media to express dissatisfaction with the jurisdiction and its "activist chief judge", arguably sparking a number of company relocations that Delaware lawmakers have tried to stop with regulatory measures.

In reviewing whether Musk had improper sway in being granted that 2018 pay package, a prominent academic expert commented that the judge noted that other "high-profile executives" like the Meta chief and the e-commerce pioneer were not granted this type of goal-oriented agreements.