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Tesla shareholders gathered this Thursday to vote on a substantial remuneration plan for Chief Executive Elon Musk estimated at close to $1 trillion. If approved, this deal would showcase investor confidence that the billionaire can steer the vehicle manufacturer into an period defined by artificial intelligence and advanced machinery. If denied, Tesla could potentially face the exit of a pioneering CEO who previously established the company name equivalent with electric vehicles.

Record-Breaking Goals and Company Valuation

If the CEO meets the formidable targets outlined in the pay package presented at Tesla's corporate assembly, he could emerge as the first-ever trillionaire. To reach this goal, he must steer Tesla to a monumental $8.5 trillion in market value, which is 800% of its existing market cap. Furthermore, he will be tasked to deploy countless autonomous vehicles and advanced androids, while sustaining the corporate profits in the massive revenue figures in the upcoming decade.

Payment Breakdown

The key aims of the compensation plan, organized into 12 tranches, chart a trajectory for Tesla to achieve its colossal valuation. If successful, Musk would be in a position to benefit from an additional 12% of the firm's equity. To qualify, he must maintain involvement with the corporation for no less than 7.5 years. He will also assist in creating a future leadership strategy for the business he has headed for more than 20 years. The equity incentives provided by the new compensation plan, alongside shares guaranteed in his 2018 package, would leave Musk with a quarter stake of Tesla's stock. As of early November, Tesla shares were valued near its annual peak, at around $450 per share.

Lofty Goals

Throughout a ten years, Musk will be required to manufacture 20 million zero-emission cars to buyers, sell 10 million active full self-driving subscriptions, produce and launch 1 million advanced androids, and launch 1 million autonomous taxis in commercial service.

Musk will additionally be obligated to bring the company to $400 billion in actual earnings for four straight quarters. Tesla's actual earnings for the July-September 2025 were $4.2 billion, down 9% from the same period last year.

In November, Musk's personal wealth was pegged at $460 billion, the highest in the world, as reported by market tracking.

Restoring a Rescinded Plan

Stockholders are also evaluating a proposal that would remunerate Musk after his 2018 compensation plan was overturned by a judicial body in Delaware. The remuneration deal, estimated to be $56 billion, was disputed by a single stockholder who prevailed in court. The state court rejected Musk's compensation plan twice. If shareholders approve the proposal in the Thursday ballot, Musk is likely to be awarded the substantial payout whether or not Tesla and Musk succeed in appealing of the case.

Following Musk's earlier remuneration deal was initially invalidated, he moved Tesla's business registration to Texas from Delaware. He did the same with his aerospace company and other business entities. In last year, per Texas statutes, shareholders for a second time approved the remuneration deal.

But Delaware's so-called "judicial body" once again ruled against one of the biggest CEO payouts in modern history. In the wake of that negative decision, Musk took to social media to express dissatisfaction with the state and its "influential presiding justice", perhaps igniting a series of corporate exits that Delaware legislators have sought to curb with legislation.

In reviewing whether Musk had undue influence in being awarded that previous compensation plan, a respected legal scholar remarked that the judge noted that other "high-profile executives" like the Meta chief and the Amazon founder were not granted this type of performance-linked deals.