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Investors in the electric car maker convened on Thursday to decide on a massive remuneration plan for the company's leader estimated at around $1 trillion. Upon approval, this plan would demonstrate investor confidence that the tech magnate can guide the automaker into an age shaped by AI technology and automation. If rejected, Tesla could confront the loss of a pioneering CEO who historically built the brand synonymous with EVs.

Historic Targets and Company Valuation

If the CEO meets the ambitious objectives outlined in the pay package revealed at Tesla's shareholder gathering, he could emerge as the world's first person with a trillion-dollar net worth. To reach this goal, he must steer Tesla to a staggering $8.5 trillion in market value, which is 800% of its present worth. Furthermore, he will be obligated to launch millions driverless automobiles and bipedal machines, while upholding the financial performance in the hundreds of billions of dollars over the next decade.

Compensation Structure

The primary objectives of the compensation plan, divided into 12 tranches, chart a path for Tesla to attain its massive valuation. If successful, Musk would be in a position to cash in an additional 12% of the firm's equity. To qualify, he must remain vested with the corporation for at least 7.5 years. Furthermore, he is required to assist in creating a future leadership strategy for the organization he has led for in excess of 20 years. The share grants awarded by the new compensation plan, combined with shares assured in his previous compensation plan, would leave Musk with 25 percent equity of Tesla's shares. By the start of November, Tesla shares were valued approaching its yearly maximum, at roughly $450 per share.

Lofty Goals

Throughout a decade, Musk will be required to deliver 20 million electric vehicles to customers, market 10 million live FSD memberships, produce and launch 1 million advanced androids, and launch 1 million autonomous taxis in revenue-generating use.

Musk will also be obligated to bring the company to $400 billion in real profits for four straight quarters. Tesla's actual earnings for the July-September 2025 were $4.2 billion, a 9% decrease from the year before.

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

Reinstating a Revoked Package

Investors are also evaluating a arrangement that would reward Musk after his 2018 compensation plan was voided by a judicial body in Delaware. The compensation package, valued at around $56 billion, was contested by a individual investor who won his case. The Delaware court of chancery rejected Musk's remuneration deal on two occasions. Should investors pass the proposal in the Thursday ballot, Musk is likely to be paid the substantial payout regardless of if Tesla and Musk overturn the ruling of the case.

After Musk's 2018 pay package was originally overturned, he transferred Tesla's business registration out of Delaware and into Texas. He repeated the action with SpaceX and additional corporate bases. In 2024, under Texas law, shareholders again approved the compensation plan.

But Delaware's known as "court of equity" for a second time ruled against one of the most substantial CEO payouts in recent times. In the wake of that unfavorable ruling, Musk posted on his accounts to express dissatisfaction with the region and its "activist chief judge", arguably fueling a wave of business departures that Delaware legislators have tried to stop with legislation.

In considering whether Musk had excessive control in being awarded that previous compensation plan, a respected academic expert remarked that the judge noted that other "celebrity leaders" like Meta's Mark Zuckerberg and the e-commerce pioneer were not awarded this type of incentive-based contracts.