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Investors in the electric car maker gathered this Thursday to decide on a substantial remuneration plan for CEO Elon Musk worth approximately close to $1 trillion. If approved, this package would demonstrate investor confidence that the entrepreneur can steer the car company into an age defined by machine learning and advanced machinery. If denied, Tesla could potentially face the exit of a pioneering CEO who historically built the brand interchangeable with electric vehicles.

Record-Breaking Targets and Market Capitalization

If the CEO meets the ambitious milestones outlined in the compensation plan introduced at Tesla's corporate assembly, he could become the first-ever trillionaire. To reach this goal, he must guide Tesla to a astronomical $8.5 trillion in market value, which is 800% of its existing market cap. Furthermore, he will be obligated to deploy countless autonomous vehicles and advanced androids, while maintaining the corporate profits in the massive revenue figures throughout the coming ten years.

Compensation Structure

The primary objectives of the compensation plan, organized into a dozen phases, outline a path for Tesla to reach its massive worth. If successful, Musk would be in a position to realize gains on an additional 12% of the corporation's shares. For this to occur, he must maintain involvement with the corporation for at least 7.5 years. He will also contribute to forming a corporate transition roadmap for the enterprise he has managed for more than 20 years. The stock options offered by the new compensation plan, alongside shares assured in his earlier deal, would result in Musk with 25% ownership of Tesla's stock. By the start of November, Tesla stock was trading near its yearly maximum, at approximately $450 each share.

Lofty Goals

During a decade, Musk will be tasked to produce 20 million zero-emission cars to buyers, distribute 10 million live FSD memberships, produce and launch 1 million bipedal machines, and launch 1 million self-driving cabs in revenue-generating use.

Musk will also be obligated to bring the corporation to $400 billion in tangible revenue for a full year. Tesla's tangible revenue for the July-September 2025 were $4.2 billion, a 9% decrease from the same period last year.

In November, Musk's net worth was pegged at $460 billion, the leading in the world, as reported by market tracking.

Reviving a Invalidated Deal

Shareholders are additionally reviewing a proposal that would compensate Musk after his previous pay package was invalidated by a judicial body in Delaware. The compensation package, worth an estimated $56 billion, was disputed by a individual investor who succeeded legally. The Delaware judicial system dismissed Musk's remuneration deal on multiple instances. Should investors pass the plan in the Thursday ballot, Musk is set to be awarded the massive amount 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 business registration to Texas from Delaware. He repeated the action with SpaceX and other companies' headquarters. In the previous year, per Texas statutes, shareholders for a second time voted to approve the remuneration deal.

But Delaware's often referred to as "equity court" for a second time rejected one of the largest CEO pay deals in recent times. In the wake of that negative decision, Musk used online platforms to voice displeasure with the state and its "activist chief judge", possibly fueling a wave of business departures that Delaware lawmakers have tried to stop with new laws.

In reviewing whether Musk had excessive control in being granted that 2018 pay package, a respected academic expert remarked that the court recognized that other "superstar CEOs" like Facebook's founder and Amazon's Jeff Bezos were not granted this sort of goal-oriented agreements.