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Investors in the electric car maker convened on Thursday to determine on a massive remuneration plan for the company's leader valued at close to $1 trillion. If approved, this plan would showcase market faith that the billionaire can lead the car company into an era dominated by machine learning and advanced machinery. If rejected, Tesla could risk the departure of a pioneering CEO who once made the corporation synonymous with EVs.

Record-Breaking Milestones and Market Capitalization

Should Musk achieve the ambitious objectives outlined in the compensation plan presented 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 staggering $8.5 trillion in market capitalization, which is eight times its present worth. Moreover, he will be obligated to roll out millions autonomous vehicles and humanoid robots, while maintaining the financial performance in the hundreds of billions in the upcoming decade.

Payment Breakdown

The key aims of the remuneration structure, organized into a dozen phases, delineate a trajectory for Tesla to attain its colossal market capitalization. Upon achievement, Musk would be able to benefit from an extra 12% of the firm's equity. For this to occur, he must maintain involvement with the corporation for no less than 7.5 years. Furthermore, he is required to contribute to forming a corporate transition roadmap for the enterprise he has managed for over 20 years. The stock options offered by the new compensation plan, in addition to shares assured in his earlier deal, would result in Musk with 25 percent equity of Tesla's stock. As of early November, Tesla equity was priced approaching its 52-week high, at approximately $450 per share.

Ambitious Targets

Over the course of a decade, Musk will be obligated to deliver 20 million electric vehicles to customers, distribute 10 million active full self-driving subscriptions, develop and sell 1 million bipedal machines, and deploy 1 million self-driving cabs in revenue-generating use.

Musk will also be required to elevate the corporation to $400 billion in tangible revenue for four consecutive quarters. Tesla's tangible revenue for the third quarter of 2025 were $4.2 billion, a 9% decrease from the year before.

As of November, Musk's fortune was pegged at $460 billion, the highest in the world, according to financial data.

Restoring a Rescinded Package

Shareholders are furthermore considering a plan that would reward Musk after his earlier remuneration deal was invalidated by a legal authority in Delaware. The compensation package, valued at around $56 billion, was contested by a individual investor who succeeded legally. The state court rejected Musk's remuneration deal on two occasions. Should investors pass the proposal in the Thursday ballot, Musk is expected to be paid the substantial payout irrespective of whether Tesla and Musk win an appeal of the case.

After Musk's 2018 pay package was initially invalidated, he relocated Tesla's business registration to Texas from Delaware. He followed suit with his aerospace company and additional corporate bases. In the previous year, per Texas statutes, shareholders for a second time passed the pay package.

But Delaware's often referred to as "court of equity" once again ruled against one of the largest CEO pay deals in contemporary business. In the wake of that negative decision, Musk posted on his accounts to voice displeasure with the region and its "influential presiding justice", possibly sparking a number of company relocations that Delaware lawmakers have tried to stop with legislation.

In evaluating whether Musk had undue influence in being granted that earlier remuneration deal, a respected law professor remarked that the judge acknowledged that other "superstar CEOs" like the Meta chief and Amazon's Jeff Bezos were not given this sort of performance-linked deals.