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Tesla shareholders assembled this Thursday to vote on a enormous remuneration plan for Chief Executive Elon Musk worth approximately around $1 trillion. Should it pass, this deal would showcase shareholder trust that the entrepreneur can lead the car company into an period defined by artificial intelligence and advanced machinery. If rejected, Tesla could potentially face the departure of a key figure who once made the brand synonymous with EVs.

Historic Goals and Company Valuation

Upon reaching the ambitious targets specified in the compensation plan revealed at Tesla's annual meeting, he could be crowned the first-ever person with a trillion-dollar net worth. For this to happen, he must guide Tesla to a monumental $8.5 trillion in company worth, which is eight times its existing market cap. Furthermore, he will be required to deploy millions driverless automobiles and bipedal machines, while maintaining the company's bottom line in the massive revenue figures over the next decade.

Reward System

The main goals of the pay package, split into a dozen phases, chart a path for Tesla to reach its massive worth. Upon achievement, Musk would be able to cash in an extra 12% of the corporation's shares. For this to occur, he must maintain involvement with the firm for at least 7.5 years. He will also contribute to forming a corporate transition roadmap for the business he has managed for over 20 years. The equity incentives provided by the latest pay package, alongside shares guaranteed in his 2018 package, would result in Musk with 25% ownership of Tesla's shares. As of early November, Tesla stock was trading close to its annual peak, at around $450 each share.

Ambitious Targets

Over the course of a decade, Musk will be tasked to deliver 20 million electric vehicles to buyers, distribute 10 million active full self-driving subscriptions, produce and launch 1 million advanced androids, and launch 1 million robotaxis in paid operations.

Musk will also be tasked to increase the corporation to $400 billion in real profits for a full year. Tesla's real profits for the July-September 2025 were $4.2 billion, down 9% from the same period last year.

As of November, Musk's personal wealth was estimated at $460 billion, the leading in the world, based on market tracking.

Reinstating a Rescinded Deal

Stockholders are also considering a plan that would reward Musk after his 2018 compensation plan was invalidated by a court in Delaware. The remuneration deal, valued at around $56 billion, was contested by a individual investor who succeeded legally. The Delaware court of chancery rejected Musk's pay package on two occasions. Upon stockholder approval the plan in the Thursday ballot, Musk is set to be awarded the huge sum irrespective of whether Tesla and Musk succeed in appealing of the legal matter.

After Musk's 2018 pay package was initially invalidated, he moved Tesla's business registration from Delaware to Texas. He followed suit with his aerospace company and other business entities. In 2024, according to Texas regulations, shareholders once again passed the remuneration deal.

But Delaware's known as "court of equity" again rejected one of the largest CEO pay deals in contemporary business. After that unfavorable ruling, Musk took to social media to express dissatisfaction with the region and its "influential presiding justice", possibly fueling a wave of business departures that Delaware officials have sought to curb with regulatory measures.

In reviewing whether Musk had excessive control in being given that 2018 pay package, a respected academic expert commented that the court noted that other "celebrity leaders" like the Meta chief and the Amazon founder were not awarded this type of incentive-based contracts.