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Investors in the electric car maker gathered on Thursday to decide on a massive remuneration plan for the company's leader worth approximately around $1 trillion. Should it pass, this deal would showcase shareholder trust that the entrepreneur can lead the vehicle manufacturer into an era defined by artificial intelligence and advanced machinery. If denied, Tesla could potentially face the exit of a key figure who previously established the company name synonymous with electric vehicles.

Record-Breaking Goals and Market Capitalization

Upon reaching the formidable milestones detailed in the compensation plan revealed at Tesla's annual meeting, he could become the pioneering person with a trillion-dollar net worth. To reach this goal, he must guide Tesla to a staggering $8.5 trillion in market capitalization, which is eight times its existing market cap. Moreover, he will be required to deploy numerous self-driving cars and advanced androids, while upholding the company's bottom line in the hundreds of billions over the next decade.

Payment Breakdown

The primary objectives of the pay package, divided into a dozen phases, chart a trajectory for Tesla to attain its massive market capitalization. Upon achievement, Musk would be able to benefit from 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. He will also assist in creating a future leadership strategy for the enterprise he has headed for more than 20 years. The share grants offered by the updated remuneration deal, alongside shares assured in his previous compensation plan, would leave Musk with 25 percent equity of Tesla's stock. As of early November, Tesla shares were valued close to its annual peak, at roughly $450 per stock.

Formidable Objectives

Throughout a ten years, Musk will be tasked to deliver 20 million zero-emission cars to customers, distribute 10 million live FSD memberships, develop and sell 1 million advanced androids, and launch 1 million self-driving cabs in revenue-generating use.

Musk will furthermore be required to increase the company to $400 billion in actual earnings for a full year. Tesla's real profits for the July-September 2025 were $4.2 billion, down 9% from the previous year.

In November, Musk's personal wealth was valued at $460 billion, the highest in the globe, based on wealth indexes.

Restoring a Invalidated Plan

Stockholders are furthermore considering a proposal that would reward Musk after his earlier remuneration deal was overturned by a judicial body in Delaware. The compensation package, estimated to be $56 billion, was disputed by a sole shareholder who won his case. The Delaware court of chancery denied Musk's pay package on multiple instances. Should investors pass the plan in Thursday's vote, Musk is set to be paid the substantial payout regardless of if Tesla and Musk win an appeal of the legal matter.

After Musk's earlier remuneration deal was first rescinded, he transferred Tesla's business registration from Delaware to Texas. He did the same with his aerospace company and other business entities. In 2024, under Texas law, shareholders again approved the compensation plan.

But Delaware's often referred to as "equity court" for a second time denied one of the biggest CEO compensation packages in contemporary business. After that unfavorable ruling, Musk posted on his accounts to voice displeasure with the state and its "influential presiding justice", possibly sparking a series of corporate exits that Delaware officials have sought to curb with legislation.

In considering whether Musk had excessive control in being given that 2018 pay package, a noted legal scholar commented that the court acknowledged that other "celebrity leaders" like the Meta chief and the Amazon founder were not awarded this sort of goal-oriented agreements.