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Tesla shareholders assembled on Thursday to decide on a massive pay deal for CEO Elon Musk estimated at nearly $1 trillion. If approved, this package would showcase investor confidence that the tech magnate can steer the car company into an period dominated by artificial intelligence and advanced machinery. If rejected, Tesla could risk the exit of a key figure who historically built the brand synonymous with electric vehicles.

Record-Breaking Milestones and Company Valuation

Upon reaching the ambitious milestones outlined in the remuneration deal introduced at Tesla's shareholder gathering, he could be crowned the pioneering person with a trillion-dollar net worth. For this to happen, he must steer Tesla to a staggering $8.5 trillion in market value, which is 800% of its current valuation. Furthermore, he will be obligated to roll out millions self-driving cars and advanced androids, while sustaining the company's bottom line in the hundreds of billions of dollars over the next decade.

Reward System

The main goals of the compensation plan, organized into a dozen phases, chart a trajectory for Tesla to reach its colossal valuation. If successful, Musk would be in a position to cash in an further 12% of the firm's equity. For this to occur, he must maintain involvement with the corporation for at least 7.5 years. Furthermore, he is required to help develop a future leadership strategy for the business he has managed for more than 20 years. The stock options awarded by the updated remuneration deal, in addition to shares guaranteed in his previous compensation plan, would grant Musk with 25 percent equity of Tesla's stock. In early November, Tesla stock was trading near its yearly maximum, at approximately $450 each share.

Ambitious Targets

During a ten years, Musk will be required to deliver 20 million EVs to consumers, distribute 10 million live FSD memberships, develop and sell 1 million advanced androids, and launch 1 million robotaxis in paid operations.

Musk will additionally be obligated to increase the company to $400 billion in real profits for a full year. Tesla's tangible revenue for the Q3 2025 were $4.2 billion, a 9% decrease from the previous year.

In November, Musk's personal wealth was valued at $460 billion, the highest in the globe, as reported by market tracking.

Reviving a Revoked Package

Stockholders are furthermore reviewing a plan that would remunerate Musk after his 2018 compensation plan was overturned by a court in Delaware. The remuneration deal, valued at around $56 billion, was disputed by a individual investor who won his case. The state court rejected Musk's remuneration deal on multiple instances. Should investors pass the plan in the Thursday ballot, Musk is likely to be awarded the substantial payout whether or not Tesla and Musk succeed in appealing of the legal matter.

Subsequent to Musk's 2018 pay package was first rescinded, he transferred Tesla's business registration out of Delaware and into Texas. He followed suit with the rocket firm and other companies' headquarters. In last year, per Texas statutes, shareholders again voted to approve the pay package.

But Delaware's so-called "judicial body" once again denied one of the biggest CEO compensation packages in modern history. Following that negative decision, Musk took to social media to show frustration with the region and its "influential presiding justice", arguably fueling a wave of business departures that Delaware officials have attempted to staunch with regulatory measures.

In evaluating whether Musk had improper sway in being awarded that earlier remuneration deal, a noted law professor observed that the judicial authority noted that other "celebrity leaders" like the Meta chief and Amazon's Jeff Bezos were not given this type of incentive-based contracts.