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Tesla shareholders gathered this Thursday to determine on a massive remuneration plan for the company's leader worth approximately nearly $1 trillion. Upon approval, this package would showcase shareholder trust that the tech magnate can lead the automaker into an period defined by machine learning and advanced machinery. If denied, Tesla could risk the exit of a key figure who once made the company name interchangeable with EVs.

Historic Goals and Company Valuation

Should Musk achieve the formidable targets detailed in the compensation plan revealed at Tesla's shareholder gathering, he could be crowned the world's first trillionaire. For this to happen, he must lead Tesla to a staggering $8.5 trillion in company worth, which is 800% of its present worth. Additionally, he will be tasked to launch countless driverless automobiles and humanoid robots, while upholding the corporate profits in the hundreds of billions in the upcoming decade.

Payment Breakdown

The main goals of the compensation plan, split into twelve stages, chart a trajectory for Tesla to attain its massive valuation. Upon achievement, Musk would be able to cash in an additional 12% of the corporation's shares. To be eligible, he must stay committed with the company for no less than 7.5 years. Furthermore, he is required to help develop a long-term succession plan for the organization he has led for over 20 years. The stock options offered by the latest pay package, combined with shares promised in his previous compensation plan, would grant Musk with 25% ownership of Tesla's equity. By the start of November, Tesla shares were valued approaching its 52-week high, at roughly $450 per share.

Ambitious Targets

Over the course of a ten years, Musk will be obligated to produce 20 million zero-emission cars to buyers, distribute 10 million active full self-driving subscriptions, produce and launch 1 million humanoid robots, and introduce 1 million robotaxis in revenue-generating use.

Musk will also be obligated to increase the corporation to $400 billion in actual earnings for four consecutive quarters. Tesla's tangible revenue for the third quarter of 2025 were $4.2 billion, a 9% decrease from the previous year.

In November, Musk's fortune was pegged at $460 billion, the highest in the world, based on market tracking.

Reinstating a Invalidated Deal

Stockholders are additionally evaluating a plan that would compensate Musk after his 2018 compensation plan was invalidated by a judicial body in Delaware. The compensation package, estimated to be $56 billion, was challenged by a sole shareholder who won his case. The state court denied Musk's compensation plan twice. Should investors pass the plan 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 earlier remuneration deal was initially invalidated, he relocated Tesla's corporate home out of Delaware and into Texas. He did the same with SpaceX and other business entities. In 2024, per Texas statutes, shareholders for a second time voted to approve the compensation plan.

But Delaware's so-called "court of equity" once again denied one of the largest CEO compensation packages in recent times. After that negative decision, Musk used online platforms to express dissatisfaction with the state and its "activist chief judge", perhaps sparking a wave of business departures that Delaware lawmakers have sought to curb with regulatory measures.

In reviewing whether Musk had undue influence in being given that earlier remuneration deal, a respected academic expert observed that the judge noted that other "celebrity leaders" like Facebook's founder and the Amazon founder were not given this sort of goal-oriented agreements.