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Tesla shareholders convened this Thursday to decide on a enormous pay deal for CEO Elon Musk worth approximately close to $1 trillion. If approved, this plan would showcase market faith that the tech magnate can lead the car company into an era dominated by AI technology and automation. Should it fail, Tesla could potentially face the exit of a key figure who once made the brand equivalent with zero-emission cars.

Historic Targets and Company Valuation

Upon reaching the ambitious objectives outlined in the remuneration deal revealed at Tesla's corporate assembly, he could become the first-ever person with a trillion-dollar net worth. To reach this goal, he must steer Tesla to a monumental $8.5 trillion in market capitalization, which is 800% of its current valuation. Furthermore, he will be required to launch countless driverless automobiles and humanoid robots, while upholding the corporate profits in the hundreds of billions over the next decade.

Compensation Structure

The main goals of the pay package, organized into a dozen phases, delineate a path for Tesla to reach its massive worth. Should targets be met, Musk would be eligible to cash in an additional 12% of the company's stock. To qualify, he must stay committed with the company for no less than 7.5 years. Furthermore, he is required to contribute to forming a corporate transition roadmap for the enterprise he has headed for more than 20 years. The stock options awarded by the updated remuneration deal, in addition to shares assured in his previous compensation plan, would result in Musk with 25% ownership of Tesla's equity. As of early November, Tesla equity was priced approaching its annual peak, at approximately $450 per share.

Ambitious Targets

Over the course of a ten-year period, Musk will be obligated to manufacture 20 million EVs to consumers, sell 10 million active full self-driving subscriptions, produce and launch 1 million bipedal machines, and introduce 1 million autonomous taxis in commercial service.

Musk will also be tasked 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, a 9% decrease from the previous year.

As of November, Musk's net worth was valued at $460 billion, the highest in the planet, based on financial data.

Restoring a Rescinded Deal

Shareholders are also reviewing a proposal that would compensate Musk after his 2018 compensation plan was overturned by a court in Delaware. The compensation package, estimated to be $56 billion, was contested by a single stockholder who prevailed in court. The state court rejected Musk's compensation plan on two occasions. Should investors pass the plan in Thursday's vote, Musk is expected to be granted the massive amount whether or not Tesla and Musk win an appeal of the legal matter.

Subsequent to Musk's earlier remuneration deal was originally overturned, he moved Tesla's legal headquarters from Delaware to Texas. He followed suit with SpaceX and additional corporate bases. In last year, under Texas law, shareholders for a second time voted to approve the pay package.

But Delaware's known as "equity court" once again rejected one of the largest CEO payouts in modern history. In the wake of that negative decision, Musk used online platforms to express dissatisfaction with the region and its "influential presiding justice", perhaps fueling a number of company relocations that Delaware lawmakers have attempted to staunch with legislation.

In evaluating whether Musk had excessive control in being awarded that earlier remuneration deal, a noted legal scholar commented that the judge acknowledged that other "superstar CEOs" like Meta's Mark Zuckerberg and the e-commerce pioneer were not awarded this kind of performance-linked deals.