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Investors in the electric car maker gathered on Thursday to determine on a substantial remuneration plan for the company's leader worth approximately nearly $1 trillion. Upon approval, this plan would demonstrate market faith that the billionaire can steer the car company into an period defined by AI technology and automation. Should it fail, Tesla could potentially face the departure of a visionary leader who once made the corporation interchangeable with electric vehicles.

Record-Breaking Goals and Company Valuation

If the CEO meets the ambitious milestones outlined in the pay package revealed at Tesla's annual meeting, he could become the world's first trillionaire. For this to happen, he must lead Tesla to a staggering $8.5 trillion in market value, which is 800% of its existing market cap. Furthermore, he will be tasked to launch millions autonomous vehicles and advanced androids, while sustaining the corporate profits in the hundreds of billions of dollars in the upcoming decade.

Payment Breakdown

The primary objectives of the pay package, organized into a dozen phases, outline a path for Tesla to achieve its enormous valuation. If successful, Musk would be eligible to realize gains on an further 12% of the firm's equity. For this to occur, he must maintain involvement with the firm for at least 7.5 years. Additionally, he must contribute to forming a corporate transition roadmap for the enterprise he has led for over 20 years. The stock options awarded by the latest pay package, combined with shares guaranteed in his previous compensation plan, would leave Musk with a quarter stake of Tesla's shares. In early November, Tesla stock was trading close to its annual peak, at roughly $450 each share.

Lofty Goals

Throughout a ten years, Musk will be required to deliver 20 million EVs to consumers, sell 10 million operational autonomous driving plans, produce and launch 1 million humanoid robots, and deploy 1 million self-driving cabs in commercial service.

Musk will furthermore be obligated to increase the firm 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 same period last year.

In November, Musk's personal wealth was estimated at $460 billion, the leading in the world, based on market tracking.

Reviving a Invalidated Package

Investors are additionally evaluating a proposal that would remunerate Musk after his previous pay package was overturned by a judicial body in Delaware. The remuneration deal, valued at around $56 billion, was challenged by a sole shareholder who succeeded legally. The Delaware court of chancery dismissed Musk's pay package on multiple instances. Upon stockholder approval the arrangement in Thursday's vote, Musk is likely to be awarded the massive amount irrespective of whether Tesla and Musk win an appeal of the lawsuit.

Following Musk's previous compensation plan was first rescinded, he relocated Tesla's legal headquarters out of Delaware and into Texas. He repeated the action with SpaceX and other business entities. In last year, according to Texas regulations, shareholders again passed the compensation plan.

But Delaware's so-called "judicial body" once again denied one of the most substantial CEO compensation packages in modern history. Following that adverse judgment, Musk used online platforms to show frustration with the jurisdiction and its "influential presiding justice", perhaps sparking a wave of business departures that Delaware lawmakers have attempted to staunch with new laws.

In considering whether Musk had excessive control in being given that earlier remuneration deal, a prominent law professor remarked that the judge acknowledged that other "high-profile executives" like Facebook's founder and the e-commerce pioneer were not given this kind of performance-linked deals.