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Tesla shareholders assembled this Thursday to vote on a enormous remuneration plan for Chief Executive Elon Musk valued at nearly $1 trillion. Upon approval, this plan would signal shareholder trust that the tech magnate can steer the car company into an era dominated by AI technology and automation. Should it fail, Tesla could confront the departure of a pioneering CEO who once made the brand equivalent with electric vehicles.

Historic Goals and Company Valuation

Upon reaching the formidable objectives outlined in the remuneration deal revealed at Tesla's corporate assembly, he could be crowned the pioneering person with a trillion-dollar net worth. For this to happen, he must steer Tesla to a astronomical $8.5 trillion in company worth, which is an eightfold increase its existing market cap. Additionally, he will be required to deploy numerous autonomous vehicles and humanoid robots, while upholding the financial performance in the massive revenue figures throughout the coming ten years.

Reward System

The primary objectives of the compensation plan, divided into 12 tranches, delineate a trajectory for Tesla to attain its enormous worth. Upon achievement, Musk would be in a position to cash in an extra 12% of the firm's equity. To be eligible, he must stay committed with the company for no less than 7.5 years. He will also contribute to forming a future leadership strategy for the business he has headed for over 20 years. The share grants provided by the updated remuneration deal, in addition to shares promised in his previous compensation plan, would leave Musk with 25% ownership of Tesla's shares. In early November, Tesla stock was trading near its yearly maximum, at around $450 per share.

Lofty Goals

Throughout a ten years, Musk will be tasked to manufacture 20 million zero-emission cars to customers, distribute 10 million live FSD memberships, create and distribute 1 million humanoid robots, and launch 1 million self-driving cabs in commercial service.

Musk will additionally be tasked to increase the company to $400 billion in real profits for four consecutive quarters. Tesla's real profits for the July-September 2025 were $4.2 billion, 9 percent lower from the year before.

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

Reinstating a Revoked Package

Shareholders are also reviewing a plan that would reward Musk after his earlier remuneration deal was invalidated by a judicial body in Delaware. The remuneration deal, estimated to be $56 billion, was contested by a single stockholder who won his case. The Delaware court of chancery dismissed Musk's pay package on two occasions. Upon stockholder approval the proposal in Thursday's vote, Musk is expected to be awarded the massive amount irrespective of whether Tesla and Musk overturn the ruling of the legal matter.

Following Musk's 2018 pay package was originally overturned, he relocated Tesla's corporate home to Texas from Delaware. He repeated the action with SpaceX and other companies' headquarters. In last year, under Texas law, shareholders again passed the pay package.

But Delaware's so-called "judicial body" for a second time denied one of the largest CEO payouts in modern history. Following that adverse judgment, Musk posted on his accounts to voice displeasure with the state and its "prominent judicial figure", arguably igniting a number of company relocations that Delaware lawmakers have tried to stop with legislation.

In evaluating whether Musk had undue influence in being granted that 2018 pay package, a respected academic expert commented that the judge noted that other "high-profile executives" like the Meta chief and the e-commerce pioneer were not given this kind of performance-linked deals.