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Tesla shareholders gathered on Thursday to vote on a massive remuneration plan for CEO Elon Musk worth approximately close to $1 trillion. Should it pass, this plan would showcase market faith that the tech magnate can guide the vehicle manufacturer into an age shaped by artificial intelligence and automation. If rejected, Tesla could risk the loss of a pioneering CEO who once made the corporation interchangeable with electric vehicles.

Record-Breaking Targets and Company Valuation

Should Musk achieve the formidable objectives outlined in the compensation plan presented at Tesla's shareholder gathering, he could be crowned the pioneering trillionaire. To reach this goal, he must lead Tesla to a astronomical $8.5 trillion in market value, which is eight times its existing market cap. Furthermore, he will be tasked to deploy countless driverless automobiles and bipedal machines, while sustaining the corporate profits in the massive revenue figures throughout the coming ten years.

Reward System

The key aims of the pay package, split into a dozen phases, chart a path for Tesla to achieve its enormous valuation. Should targets be met, Musk would be able to realize gains on an extra 12% of the company's stock. To be eligible, he must stay committed with the corporation for a minimum of 7.5 years. Furthermore, he is required to help develop a future leadership strategy for the enterprise he has headed for more than 20 years. The share grants provided by the updated remuneration deal, alongside shares guaranteed in his previous compensation plan, would grant Musk with a quarter stake of Tesla's stock. In early November, Tesla equity was priced close to its yearly maximum, at roughly $450 each share.

Formidable Objectives

Over the course of a ten-year period, Musk will be required to deliver 20 million electric vehicles to consumers, sell 10 million live FSD memberships, develop and sell 1 million humanoid robots, and deploy 1 million self-driving cabs in commercial service.

Musk will furthermore be tasked to bring the company to $400 billion in actual earnings for four straight quarters. Tesla's real profits for the Q3 2025 were $4.2 billion, down 9% from the year before.

In November, Musk's fortune was valued at $460 billion, the top in the globe, based on financial data.

Reinstating a Revoked Package

Stockholders are also evaluating a plan that would remunerate Musk after his earlier remuneration deal was overturned by a court in Delaware. The compensation package, worth an estimated $56 billion, was contested by a sole shareholder who succeeded legally. The Delaware court of chancery dismissed Musk's remuneration deal on multiple instances. Upon stockholder approval the proposal in the shareholder meeting, Musk is expected to be paid the huge sum irrespective of whether Tesla and Musk succeed in appealing of the legal matter.

Following Musk's earlier remuneration deal was first rescinded, he moved Tesla's legal headquarters to Texas from Delaware. He followed suit with SpaceX and other companies' headquarters. In last year, under Texas law, shareholders again passed the pay package.

But Delaware's often referred to as "court of equity" again ruled against one of the largest CEO compensation packages in recent times. After that negative decision, Musk posted on his accounts to express dissatisfaction with the state and its "prominent judicial figure", arguably sparking a number of company relocations that Delaware legislators have sought to curb with regulatory measures.

In evaluating whether Musk had improper sway in being given that previous compensation plan, a prominent legal scholar commented that the judicial authority recognized that other "high-profile executives" like Meta's Mark Zuckerberg and Amazon's Jeff Bezos were not granted this type of goal-oriented agreements.