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Investors in the electric car maker assembled on Thursday to vote on a massive pay deal for CEO Elon Musk valued at around $1 trillion. If approved, this deal would showcase market faith that the entrepreneur can lead the vehicle manufacturer into an period shaped by artificial intelligence and automation. If denied, Tesla could confront the departure of a visionary leader who previously established the brand interchangeable with zero-emission cars.

Record-Breaking Goals and Company Valuation

Upon reaching the lofty milestones outlined in the remuneration deal introduced at Tesla's shareholder gathering, he could become the first-ever trillionaire. To reach this goal, he must steer Tesla to a monumental $8.5 trillion in company worth, which is 800% of its present worth. Furthermore, he will be required to launch millions autonomous vehicles and humanoid robots, while sustaining the company's bottom line in the hundreds of billions throughout the coming ten years.

Payment Breakdown

The key aims of the compensation plan, divided into twelve stages, delineate a roadmap for Tesla to reach its enormous worth. If successful, Musk would be in a position to cash in an additional 12% of the firm's equity. For this to occur, he must maintain involvement with the company for no less than 7.5 years. Additionally, he must help develop a corporate transition roadmap for the organization he has managed for over 20 years. The share grants provided by the updated remuneration deal, in addition to shares assured in his previous compensation plan, would grant Musk with 25% ownership of Tesla's stock. By the start of November, Tesla stock was trading close to its 52-week high, at roughly $450 each share.

Formidable Objectives

During a ten years, Musk will be tasked to produce 20 million EVs to consumers, market 10 million live FSD memberships, produce and launch 1 million bipedal machines, and deploy 1 million self-driving cabs in revenue-generating use.

Musk will furthermore be required 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, down 9% from the year before.

In November, Musk's net worth was valued at $460 billion, the top in the world, according to wealth indexes.

Reviving a Invalidated Plan

Investors are also reviewing a proposal that would remunerate Musk after his 2018 compensation plan was voided by a legal authority in Delaware. The remuneration deal, valued at around $56 billion, was contested by a sole shareholder who succeeded legally. The Delaware judicial system dismissed Musk's compensation plan on multiple instances. Upon stockholder approval the proposal in the shareholder meeting, Musk is expected to be paid the massive amount irrespective of whether Tesla and Musk overturn the ruling of the case.

Subsequent to Musk's earlier remuneration deal was first rescinded, he moved Tesla's corporate home from Delaware to Texas. He followed suit with SpaceX and additional corporate bases. In 2024, per Texas statutes, shareholders once again approved the remuneration deal.

But Delaware's so-called "judicial body" for a second time rejected one of the most substantial CEO compensation packages in recent times. In the wake of that unfavorable ruling, Musk used online platforms to voice displeasure with the jurisdiction and its "prominent judicial figure", arguably sparking a series of corporate exits that Delaware lawmakers have sought to curb with new laws.

In considering whether Musk had improper sway in being granted that 2018 pay package, a prominent legal scholar commented that the judge noted that other "celebrity leaders" like Meta's Mark Zuckerberg and the e-commerce pioneer were not given this type of incentive-based contracts.