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Investors in the electric car maker assembled on Thursday to vote on a enormous remuneration plan for CEO Elon Musk estimated at around $1 trillion. If approved, this plan would showcase market faith that the tech magnate can lead the vehicle manufacturer into an era shaped by machine learning and robotics. If denied, Tesla could confront the exit of a visionary leader who once made the brand interchangeable with EVs.

Record-Breaking Milestones and Company Valuation

Should Musk achieve the formidable targets outlined in the compensation plan revealed at Tesla's corporate assembly, he could be crowned the first-ever 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 existing market cap. Moreover, he will be tasked to launch millions self-driving cars and humanoid robots, while maintaining the company's bottom line in the hundreds of billions of dollars over the next decade.

Payment Breakdown

The key aims of the remuneration structure, split into twelve stages, outline a path for Tesla to attain its massive worth. Upon achievement, Musk would be eligible to benefit from an extra 12% of the firm's equity. For this to occur, he must stay committed with the firm for no less than 7.5 years. He will also assist in creating a long-term succession plan for the business he has led for over 20 years. The stock options awarded by the new compensation plan, in addition to shares promised in his previous compensation plan, would leave Musk with 25 percent equity of Tesla's shares. As of early November, Tesla shares were valued near its yearly maximum, at roughly $450 each share.

Formidable Objectives

During a ten-year period, Musk will be required to deliver 20 million EVs to customers, sell 10 million live FSD memberships, develop and sell 1 million advanced androids, and launch 1 million autonomous taxis in paid operations.

Musk will also be tasked to elevate the company to $400 billion in tangible revenue for a full year. 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 valued at $460 billion, the top in the globe, as reported by market tracking.

Reinstating a Revoked Package

Stockholders are additionally evaluating a proposal that would remunerate Musk after his previous pay package was voided by a judicial body in Delaware. The pay plan, estimated to be $56 billion, was disputed by a individual investor who won his case. The state court dismissed Musk's pay package on two occasions. Should investors pass the proposal in Thursday's vote, Musk is likely to be granted the huge sum regardless of if Tesla and Musk succeed in appealing of the legal matter.

Following Musk's earlier remuneration deal was initially invalidated, he moved Tesla's corporate home to Texas from Delaware. He did the same with his aerospace company and other companies' headquarters. In 2024, per Texas statutes, shareholders once again approved the remuneration deal.

But Delaware's often referred to as "judicial body" for a second time rejected one of the biggest CEO pay deals in contemporary business. In the wake of that unfavorable ruling, Musk posted on his accounts to voice displeasure with the state and its "influential presiding justice", perhaps sparking a series of corporate exits that Delaware officials have attempted to staunch with new laws.

In reviewing whether Musk had improper sway in being awarded that previous compensation plan, a noted legal scholar commented that the judicial authority noted that other "high-profile executives" like the Meta chief and Amazon's Jeff Bezos were not granted this type of incentive-based contracts.