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Investors in the electric car maker gathered on Thursday to vote on a massive remuneration plan for Chief Executive Elon Musk estimated at around $1 trillion. If approved, this package would signal investor confidence that the entrepreneur can lead the car company into an age shaped by AI technology and automation. If denied, Tesla could risk the departure of a key figure who once made the brand equivalent with EVs.

Historic Milestones and Company Valuation

If the CEO meets the ambitious objectives detailed in the compensation plan presented at Tesla's corporate assembly, he could be crowned the world's first person with a trillion-dollar net worth. For this to happen, he must guide Tesla to a astronomical $8.5 trillion in market capitalization, which is eight times its present worth. Additionally, he will be obligated to deploy numerous driverless automobiles and bipedal machines, while sustaining the corporate profits in the massive revenue figures in the upcoming decade.

Reward System

The primary objectives of the remuneration structure, organized into a dozen phases, outline a roadmap for Tesla to reach its massive valuation. If successful, Musk would be eligible to cash in an further 12% of the firm's equity. For this to occur, he must maintain involvement with the firm for a minimum of 7.5 years. Furthermore, he is required to assist in creating a long-term succession plan for the business he has managed for over 20 years. The stock options offered by the new compensation plan, alongside shares promised in his earlier deal, would grant Musk with a quarter stake of Tesla's shares. In early November, Tesla stock was trading close to its annual peak, at roughly $450 per stock.

Ambitious Targets

Over the course of a ten years, Musk will be obligated to deliver 20 million zero-emission cars to customers, sell 10 million operational autonomous driving plans, develop and sell 1 million advanced androids, and deploy 1 million robotaxis in revenue-generating use.

Musk will furthermore be required to elevate the firm to $400 billion in real profits for four straight quarters. Tesla's tangible revenue for the Q3 2025 were $4.2 billion, a 9% decrease from the previous year.

In November, Musk's net worth was pegged at $460 billion, the leading in the planet, based on market tracking.

Reviving a Revoked Package

Shareholders are furthermore evaluating a plan that would compensate Musk after his 2018 compensation plan was overturned by a legal authority in Delaware. The compensation package, estimated to be $56 billion, was challenged by a individual investor who won his case. The Delaware judicial system denied Musk's compensation plan twice. Upon stockholder approval the proposal in Thursday's vote, Musk is set to be awarded the massive amount irrespective of whether Tesla and Musk overturn the ruling of the case.

Subsequent to Musk's previous compensation plan was originally overturned, he moved Tesla's corporate home to Texas from Delaware. He did the same with SpaceX and other companies' headquarters. In 2024, according to Texas regulations, shareholders once again voted to approve the pay package.

But Delaware's known as "court of equity" once again ruled against one of the largest CEO pay deals in contemporary business. After that negative decision, Musk took to social media to express dissatisfaction with the state and its "prominent judicial figure", perhaps fueling a wave of business departures that Delaware lawmakers have attempted to staunch with new laws.

In considering whether Musk had undue influence in being awarded that 2018 pay package, a noted law professor remarked that the judge recognized that other "superstar CEOs" like Meta's Mark Zuckerberg and Amazon's Jeff Bezos were not granted this type of goal-oriented agreements.