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Investors in the electric car maker convened on Thursday to vote on a massive remuneration plan for the company's leader estimated at nearly $1 trillion. Should it pass, this package would signal shareholder trust that the tech magnate can steer the car company into an era shaped by AI technology and advanced machinery. If rejected, Tesla could potentially face the departure of a pioneering CEO who once made the company name synonymous with zero-emission cars.

Historic Goals and Market Capitalization

If the CEO meets the ambitious targets specified in the pay package introduced at Tesla's corporate assembly, he could become the pioneering person with a trillion-dollar net worth. To reach this goal, he must steer Tesla to a astronomical $8.5 trillion in market capitalization, which is an eightfold increase its existing market cap. Furthermore, he will be required to roll out numerous autonomous vehicles and bipedal machines, while upholding the corporate profits in the hundreds of billions in the upcoming decade.

Payment Breakdown

The main goals of the pay package, organized into twelve stages, outline a roadmap for Tesla to attain its enormous market capitalization. Should targets be met, Musk would be eligible to benefit from an extra 12% of the corporation's shares. To qualify, he must maintain involvement with the company for no less than 7.5 years. He will also assist in creating a future leadership strategy for the organization he has headed for over 20 years. The equity incentives awarded by the new compensation plan, in addition to shares guaranteed in his previous compensation plan, would grant Musk with 25 percent equity of Tesla's shares. In early November, Tesla equity was priced near its annual peak, at roughly $450 each share.

Lofty Goals

Throughout a ten years, Musk will be obligated to deliver 20 million electric vehicles to customers, market 10 million operational autonomous driving plans, produce and launch 1 million advanced androids, and introduce 1 million robotaxis in revenue-generating use.

Musk will furthermore be required to increase the company to $400 billion in tangible revenue for four straight quarters. Tesla's actual earnings for the Q3 2025 were $4.2 billion, 9 percent lower from the year before.

As of November, Musk's fortune was estimated at $460 billion, the top in the world, according to market tracking.

Restoring a Rescinded Package

Shareholders are also considering a arrangement that would compensate Musk after his earlier remuneration deal was voided by a court in Delaware. The pay plan, worth an estimated $56 billion, was disputed by a individual investor who prevailed in court. The Delaware court of chancery rejected Musk's remuneration deal twice. If shareholders approve the proposal in the shareholder meeting, Musk is expected to be granted the substantial payout regardless of if Tesla and Musk overturn the ruling of the case.

Following Musk's 2018 pay package was originally overturned, he relocated Tesla's legal headquarters to Texas from Delaware. He followed suit with his aerospace company and other business entities. In the previous year, under Texas law, shareholders again voted to approve the remuneration deal.

But Delaware's often referred to as "court of equity" again denied one of the largest CEO pay deals in modern history. After that adverse judgment, Musk took to social media to express dissatisfaction with the jurisdiction and its "prominent judicial figure", perhaps igniting a number of company relocations that Delaware legislators have attempted to staunch with legislation.

In considering whether Musk had improper sway in being given that 2018 pay package, a prominent legal scholar remarked that the court recognized that other "high-profile executives" like the Meta chief and the e-commerce pioneer were not granted this type of goal-oriented agreements.