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Investors in the electric car maker gathered on Thursday to determine on a substantial remuneration plan for CEO Elon Musk estimated at nearly $1 trillion. Upon approval, this package would showcase investor confidence that the tech magnate can lead the automaker into an era defined by artificial intelligence and advanced machinery. If rejected, Tesla could confront the loss of a pioneering CEO who historically built the brand equivalent with electric vehicles.

Record-Breaking Milestones and Company Valuation

If the CEO meets the lofty targets outlined in the remuneration deal presented at Tesla's shareholder gathering, he could emerge as the pioneering person with a trillion-dollar net worth. For this to happen, he must lead Tesla to a astronomical $8.5 trillion in market value, which is eight times its existing market cap. Additionally, he will be required to launch countless driverless automobiles and bipedal machines, while upholding the corporate profits in the hundreds of billions of dollars over the next decade.

Reward System

The key aims of the pay package, divided into 12 tranches, outline a trajectory for Tesla to achieve its colossal worth. Should targets be met, Musk would be in a position to realize gains on an extra 12% of the company's stock. To qualify, he must stay committed with the company for a minimum of 7.5 years. Additionally, he must help develop a long-term succession plan for the enterprise he has headed for over 20 years. The equity incentives awarded by the latest pay package, alongside shares assured in his previous compensation plan, would grant Musk with 25% ownership of Tesla's equity. In early November, Tesla stock was trading close to its 52-week high, at around $450 each share.

Formidable Objectives

During a decade, Musk will be obligated to manufacture 20 million zero-emission cars to buyers, market 10 million operational autonomous driving plans, create and distribute 1 million humanoid robots, and introduce 1 million self-driving cabs in commercial service.

Musk will furthermore be obligated to elevate the company to $400 billion in actual earnings for four straight quarters. Tesla's actual earnings for the Q3 2025 were $4.2 billion, a 9% decrease from the year before.

As of November, Musk's personal wealth was pegged at $460 billion, the top in the world, based on financial data.

Restoring a Revoked Plan

Shareholders are furthermore reviewing a proposal that would remunerate Musk after his 2018 compensation plan was invalidated by a court in Delaware. The pay plan, estimated to be $56 billion, was disputed by a single stockholder who prevailed in court. The Delaware judicial system rejected Musk's pay package on multiple instances. If shareholders approve the plan in the shareholder meeting, Musk is likely to be awarded the substantial payout whether or not Tesla and Musk overturn the ruling of the legal matter.

Following Musk's previous compensation plan was first rescinded, he moved Tesla's corporate home to Texas from Delaware. He did the same with SpaceX and other companies' headquarters. In last year, under Texas law, shareholders again approved the pay package.

But Delaware's so-called "court of equity" again denied one of the largest CEO payouts in recent times. After that negative decision, Musk used online platforms to voice displeasure with the jurisdiction and its "activist chief judge", possibly igniting a number of company relocations that Delaware lawmakers have tried to stop with regulatory measures.

In reviewing whether Musk had undue influence in being awarded that 2018 pay package, a prominent academic expert commented that the judicial authority noted that other "superstar CEOs" like Meta's Mark Zuckerberg and the Amazon founder were not granted this kind of incentive-based contracts.