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Tesla shareholders assembled this Thursday to decide on a enormous remuneration plan for the company's leader valued at close to $1 trillion. If approved, this package would showcase investor confidence that the billionaire can steer the car company into an age defined by AI technology and automation. If denied, Tesla could potentially face the exit of a pioneering CEO who previously established the company name interchangeable with electric vehicles.

Record-Breaking Milestones and Company Valuation

If the CEO meets the ambitious targets detailed in the remuneration deal revealed at Tesla's shareholder gathering, he could become the first-ever person with a trillion-dollar net worth. For this to happen, he must lead Tesla to a staggering $8.5 trillion in company worth, which is 800% of its existing market cap. Furthermore, he will be required to launch numerous self-driving cars and advanced androids, while upholding the company's bottom line in the massive revenue figures over the next decade.

Reward System

The key aims of the pay package, split into 12 tranches, chart a path for Tesla to reach its enormous worth. If successful, Musk would be eligible to realize gains on an additional 12% of the corporation's shares. To be eligible, he must remain vested with the firm for no less than 7.5 years. Additionally, he must contribute to forming a future leadership strategy for the organization he has headed for over 20 years. The equity incentives awarded by the latest pay package, combined with shares promised in his 2018 package, would result in Musk with 25 percent equity of Tesla's stock. In early November, Tesla shares were valued close to its annual peak, at roughly $450 each share.

Lofty Goals

Throughout a ten-year period, Musk will be tasked to deliver 20 million zero-emission cars to consumers, market 10 million live FSD memberships, create and distribute 1 million bipedal machines, and deploy 1 million autonomous taxis in paid operations.

Musk will furthermore be required to increase the company to $400 billion in real profits for a full year. Tesla's real profits for the Q3 2025 were $4.2 billion, down 9% from the year before.

In November, Musk's fortune was valued at $460 billion, the highest in the world, according to financial data.

Reviving a Rescinded Deal

Stockholders are furthermore considering a arrangement that would compensate Musk after his earlier remuneration deal was overturned by a court in Delaware. The compensation package, estimated to be $56 billion, was disputed by a sole shareholder who won his case. The Delaware judicial system denied Musk's remuneration deal on multiple instances. Should investors pass the proposal in the shareholder meeting, Musk is likely to be awarded the huge sum regardless of if Tesla and Musk succeed in appealing of the lawsuit.

After Musk's 2018 pay package was originally overturned, he relocated Tesla's legal headquarters to Texas from Delaware. He did the same with SpaceX and other companies' headquarters. In last year, according to Texas regulations, shareholders once again approved the pay package.

But Delaware's so-called "judicial body" once again denied one of the biggest CEO payouts in modern history. In the wake of that negative decision, Musk posted on his accounts to express dissatisfaction with the region and its "activist chief judge", arguably fueling a series of corporate exits that Delaware lawmakers have tried to stop with regulatory measures.

In evaluating whether Musk had excessive control in being awarded that 2018 pay package, a prominent law professor remarked that the court noted that other "high-profile executives" like Meta's Mark Zuckerberg and Amazon's Jeff Bezos were not awarded this type of performance-linked deals.