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Tesla shareholders convened this Thursday to determine on a massive remuneration plan for CEO Elon Musk worth approximately around $1 trillion. Should it pass, this package would signal market faith that the billionaire can steer the vehicle manufacturer into an age defined by machine learning and automation. Should it fail, Tesla could potentially face the exit of a key figure who previously established the company name synonymous with zero-emission cars.

Record-Breaking Goals and Market Capitalization

If the CEO meets the ambitious milestones detailed in the remuneration deal introduced at Tesla's corporate assembly, he could become the world's first person with a trillion-dollar net worth. To reach this goal, he must guide Tesla to a monumental $8.5 trillion in company worth, which is an eightfold increase its existing market cap. Moreover, he will be tasked to launch millions self-driving cars and advanced androids, while maintaining the corporate profits in the massive revenue figures throughout the coming ten years.

Compensation Structure

The primary objectives of the pay package, divided into twelve stages, chart a roadmap for Tesla to reach its massive worth. Should targets be met, Musk would be able to realize gains on an additional 12% of the company's stock. For this to occur, he must stay committed with the firm for at least 7.5 years. Additionally, he must contribute to forming a long-term succession plan for the business he has led for more than 20 years. The stock options offered by the updated remuneration deal, combined with shares promised in his 2018 package, would grant Musk with a quarter stake of Tesla's stock. In early November, Tesla equity was priced near its annual peak, at roughly $450 each share.

Ambitious Targets

Over the course of a ten-year period, Musk will be required to deliver 20 million electric vehicles to buyers, sell 10 million live FSD memberships, produce and launch 1 million humanoid robots, and deploy 1 million robotaxis in paid operations.

Musk will also be obligated to bring the company to $400 billion in actual earnings for four consecutive quarters. Tesla's real profits for the third quarter of 2025 were $4.2 billion, a 9% decrease from the year before.

As of November, Musk's net worth was valued at $460 billion, the highest in the planet, as reported by financial data.

Reinstating a Revoked Package

Shareholders are also reviewing a proposal that would compensate Musk after his previous pay package was voided by a court in Delaware. The remuneration deal, estimated to be $56 billion, was disputed by a sole shareholder who won his case. The Delaware judicial system dismissed Musk's pay package on multiple instances. Should investors pass the arrangement in the Thursday ballot, Musk is expected to be granted the substantial payout regardless of if Tesla and Musk succeed in appealing of the lawsuit.

Following Musk's earlier remuneration deal was initially invalidated, he transferred Tesla's business registration from Delaware to Texas. He did the same with the rocket firm and other companies' headquarters. In 2024, under Texas law, shareholders again voted to approve the compensation plan.

But Delaware's often referred to as "equity court" for a second time ruled against one of the most substantial CEO compensation packages in modern history. Following that negative decision, Musk used online platforms to voice displeasure with the region and its "activist chief judge", arguably sparking a series of corporate exits that Delaware legislators have tried to stop with legislation.

In evaluating whether Musk had undue influence in being awarded that previous compensation plan, a prominent legal scholar commented that the judge noted that other "high-profile executives" like the Meta chief and the e-commerce pioneer were not granted this kind of incentive-based contracts.