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Investors in the electric car maker assembled this Thursday to vote on a massive compensation package for the company's leader worth approximately close to $1 trillion. Should it pass, this deal would showcase shareholder trust that the billionaire can steer the car company into an age dominated by AI technology and advanced machinery. If denied, Tesla could potentially face the exit of a pioneering CEO who previously established the brand interchangeable with EVs.

Historic Targets and Company Valuation

If the CEO meets the ambitious targets detailed in the remuneration deal revealed at Tesla's corporate assembly, he could emerge as the first-ever trillionaire. For this to happen, he must steer Tesla to a monumental $8.5 trillion in market capitalization, which is 800% of its present worth. Additionally, he will be required to launch numerous driverless automobiles and humanoid robots, while maintaining the financial performance in the hundreds of billions of dollars throughout the coming ten years.

Compensation Structure

The primary objectives of the compensation plan, organized into twelve stages, outline a trajectory for Tesla to achieve its massive market capitalization. If successful, Musk would be eligible to realize gains on an extra 12% of the firm's equity. To be eligible, he must maintain involvement with the company for at least 7.5 years. He will also contribute to forming a long-term succession plan for the organization he has managed for over 20 years. The stock options awarded by the new compensation plan, combined with shares assured in his 2018 package, would leave Musk with 25% ownership of Tesla's shares. As of early November, Tesla shares were valued close to its annual peak, at roughly $450 per share.

Formidable Objectives

Over the course of a ten years, Musk will be required to produce 20 million zero-emission cars to customers, market 10 million active full self-driving subscriptions, create and distribute 1 million humanoid robots, and introduce 1 million self-driving cabs in paid operations.

Musk will additionally be obligated to elevate the corporation to $400 billion in tangible revenue for four consecutive quarters. Tesla's tangible revenue for the Q3 2025 were $4.2 billion, down 9% from the previous year.

By November, Musk's net worth was valued at $460 billion, the highest in the world, based on wealth indexes.

Reinstating a Revoked Package

Shareholders are also reviewing a plan 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 single stockholder who won his case. The Delaware judicial system denied Musk's remuneration deal on two occasions. If shareholders approve the plan in the Thursday ballot, Musk is set to be awarded the substantial payout regardless of if Tesla and Musk overturn the ruling of the case.

After Musk's previous compensation plan was first rescinded, he transferred Tesla's legal headquarters to Texas from Delaware. He repeated the action with his aerospace company and other companies' headquarters. In the previous year, according to Texas regulations, shareholders for a second time approved the remuneration deal.

But Delaware's known as "court of equity" for a second time ruled against one of the biggest CEO payouts in recent times. Following that negative decision, Musk used online platforms to voice displeasure with the jurisdiction and its "prominent judicial figure", possibly sparking a number of company relocations that Delaware lawmakers have tried to stop with new laws.

In considering whether Musk had excessive control in being given that 2018 pay package, a prominent law professor observed that the court noted that other "superstar CEOs" like Facebook's founder and Amazon's Jeff Bezos were not granted this type of goal-oriented agreements.