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Investors in the electric car maker gathered on Thursday to determine on a enormous remuneration plan for the company's leader worth approximately around $1 trillion. If approved, this package would showcase shareholder trust that the entrepreneur can lead the car company into an period dominated by machine learning and automation. Should it fail, Tesla could risk the exit of a visionary leader who previously established the company name synonymous with zero-emission cars.

Record-Breaking Goals and Company Valuation

If the CEO meets the formidable milestones specified in the compensation plan presented at Tesla's corporate assembly, he could emerge as the pioneering person with a trillion-dollar net worth. For this to happen, he must guide Tesla to a astronomical $8.5 trillion in market value, which is eight times its present worth. Furthermore, he will be required to launch numerous driverless automobiles and advanced androids, while upholding the financial performance in the massive revenue figures over the next decade.

Payment Breakdown

The main goals of the remuneration structure, divided into a dozen phases, outline a trajectory for Tesla to attain its enormous valuation. Should targets be met, Musk would be able to benefit from an extra 12% of the company's stock. For this to occur, he must remain vested with the corporation for a minimum of 7.5 years. He will also help develop a future leadership strategy for the business he has managed for over 20 years. The equity incentives provided by the new compensation plan, in addition to shares promised in his previous compensation plan, would leave Musk with 25 percent equity of Tesla's stock. In early November, Tesla shares were valued approaching its 52-week high, at roughly $450 per share.

Ambitious Targets

During a ten years, Musk will be tasked to manufacture 20 million EVs to consumers, sell 10 million live FSD memberships, produce and launch 1 million humanoid robots, and launch 1 million autonomous taxis in paid operations.

Musk will furthermore be obligated to increase the company to $400 billion in tangible revenue for four straight quarters. Tesla's real profits for the Q3 2025 were $4.2 billion, down 9% from the previous year.

As of November, Musk's net worth was pegged at $460 billion, the leading in the globe, based on wealth indexes.

Reviving a Rescinded Plan

Investors are also considering a arrangement that would compensate Musk after his 2018 compensation plan was overturned by a judicial body in Delaware. The compensation package, estimated to be $56 billion, was contested by a sole shareholder who succeeded legally. The Delaware judicial system rejected Musk's compensation plan on multiple instances. If shareholders approve the arrangement in the Thursday ballot, Musk is expected to be paid the huge sum irrespective of whether Tesla and Musk win an appeal of the lawsuit.

Following Musk's earlier remuneration deal was originally overturned, he moved Tesla's business registration to Texas from Delaware. He followed suit with SpaceX and other companies' headquarters. In last year, per Texas statutes, shareholders for a second time passed the pay package.

But Delaware's so-called "court of equity" again ruled against one of the biggest CEO pay deals in recent times. Following that unfavorable ruling, Musk used online platforms to voice displeasure with the state and its "activist chief judge", arguably fueling a wave of business departures that Delaware lawmakers have sought to curb with regulatory measures.

In considering whether Musk had undue influence in being given that previous compensation plan, a respected legal scholar remarked that the judicial authority recognized that other "celebrity leaders" like the Meta chief and Amazon's Jeff Bezos were not granted this kind of incentive-based contracts.