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Investors in the electric car maker convened on Thursday to decide on a enormous remuneration plan for CEO Elon Musk valued at around $1 trillion. Upon approval, this deal would signal shareholder trust that the billionaire can guide the automaker into an period dominated by machine learning and advanced machinery. If rejected, Tesla could confront the exit of a key figure who previously established the brand interchangeable with EVs.

Historic Targets and Market Capitalization

Upon reaching the ambitious objectives detailed in the pay package revealed at Tesla's annual meeting, he could be crowned the world's first trillionaire. To accomplish this, he must guide Tesla to a monumental $8.5 trillion in market value, which is eight times its existing market cap. Additionally, he will be tasked to launch countless driverless automobiles and bipedal machines, while sustaining the company's bottom line in the hundreds of billions of dollars over the next decade.

Reward System

The primary objectives of the compensation plan, split into twelve stages, chart a roadmap for Tesla to achieve its enormous market capitalization. Upon achievement, Musk would be able to benefit from an additional 12% of the company's stock. To qualify, he must remain vested with the firm for no less than 7.5 years. Furthermore, he is required to assist in creating a corporate transition roadmap for the enterprise he has managed for over 20 years. The share grants offered by the latest pay package, combined with shares promised in his previous compensation plan, would leave Musk with 25% ownership of Tesla's shares. By the start of November, Tesla equity was priced close to its 52-week high, at roughly $450 per share.

Ambitious Targets

Over the course of a decade, Musk will be required to produce 20 million EVs to consumers, distribute 10 million live FSD memberships, develop and sell 1 million humanoid robots, and launch 1 million self-driving cabs in revenue-generating use.

Musk will furthermore be tasked to elevate the firm to $400 billion in real profits for four consecutive quarters. Tesla's real profits for the third quarter of 2025 were $4.2 billion, a 9% decrease from the year before.

As of November, Musk's net worth was pegged at $460 billion, the leading in the world, as reported by financial data.

Restoring a Revoked Plan

Shareholders are additionally reviewing a plan that would remunerate Musk after his previous pay package was overturned by a court in Delaware. The compensation package, estimated to be $56 billion, was challenged by a sole shareholder who won his case. The Delaware judicial system dismissed Musk's pay package on two occasions. If shareholders approve the arrangement in the shareholder meeting, Musk is expected to be paid the huge sum irrespective of whether Tesla and Musk win an appeal of the legal matter.

Following Musk's earlier remuneration deal was first rescinded, he transferred Tesla's corporate home from Delaware to Texas. He did the same with SpaceX and other companies' headquarters. In the previous year, according to Texas regulations, shareholders for a second time approved the remuneration deal.

But Delaware's often referred to as "court of equity" once again denied one of the biggest CEO payouts in modern history. In the wake of that adverse judgment, Musk used online platforms to express dissatisfaction with the region and its "activist chief judge", perhaps fueling a wave of business departures that Delaware legislators have attempted to staunch with new laws.

In evaluating whether Musk had undue influence in being given that earlier remuneration deal, a noted legal scholar commented that the judge recognized that other "celebrity leaders" like the Meta chief and Amazon's Jeff Bezos were not granted this type of goal-oriented agreements.