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Investors in the electric car maker convened on Thursday to decide on a substantial compensation package for the company's leader worth approximately close to $1 trillion. Should it pass, this deal would demonstrate shareholder trust that the entrepreneur can lead the car company into an period dominated by artificial intelligence and automation. If rejected, Tesla could risk the exit of a key figure who once made the company name interchangeable with EVs.

Record-Breaking Targets and Company Valuation

If the CEO meets the ambitious objectives detailed in the remuneration deal introduced at Tesla's corporate assembly, he could be crowned the world's first person with a trillion-dollar net worth. To accomplish this, he must guide Tesla to a staggering $8.5 trillion in market capitalization, which is 800% of its present worth. Moreover, he will be tasked to deploy numerous driverless automobiles and advanced androids, while maintaining the corporate profits in the hundreds of billions of dollars over the next decade.

Reward System

The key aims of the compensation plan, divided into twelve stages, outline a path for Tesla to achieve its colossal market capitalization. Upon achievement, Musk would be able to realize gains on an extra 12% of the company's stock. To be eligible, he must maintain involvement with the company for no less than 7.5 years. Furthermore, he is required to assist in creating a long-term succession plan for the business he has managed for in excess of 20 years. The share grants provided by the new compensation plan, in addition to shares promised in his 2018 package, would leave Musk with a quarter stake of Tesla's stock. By the start of November, Tesla equity was priced near its 52-week high, at approximately $450 per stock.

Ambitious Targets

Over the course of a decade, Musk will be required to produce 20 million electric vehicles to customers, distribute 10 million live FSD memberships, develop and sell 1 million humanoid robots, and launch 1 million robotaxis in revenue-generating use.

Musk will additionally be obligated to increase the firm to $400 billion in tangible revenue for a full year. Tesla's tangible revenue 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 planet, according to market tracking.

Reinstating a Invalidated Deal

Investors are also evaluating a arrangement that would reward Musk after his 2018 compensation plan was overturned by a judicial body in Delaware. The pay plan, estimated to be $56 billion, was contested by a single stockholder who prevailed in court. The Delaware judicial system rejected Musk's pay package on two occasions. Upon stockholder approval the plan in Thursday's vote, Musk is likely to be paid the massive amount whether or not Tesla and Musk overturn the ruling of the legal matter.

Following Musk's previous compensation plan was first rescinded, he relocated Tesla's corporate home out of Delaware and into Texas. He followed suit with SpaceX and other companies' headquarters. In last year, according to Texas regulations, shareholders again voted to approve the compensation plan.

But Delaware's known as "equity court" once again denied one of the most substantial CEO pay deals in recent times. In the wake of that unfavorable ruling, Musk used online platforms to show frustration with the jurisdiction and its "activist chief judge", possibly sparking a wave of business departures that Delaware lawmakers have attempted to staunch with legislation.

In reviewing whether Musk had undue influence in being given that earlier remuneration deal, a respected legal scholar commented that the judge acknowledged that other "high-profile executives" like Facebook's founder and the e-commerce pioneer were not awarded this sort of incentive-based contracts.