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Investors in the electric car maker gathered on Thursday to vote on a substantial remuneration plan for the company's leader valued at around $1 trillion. If approved, this package would showcase investor confidence that the tech magnate can steer the automaker into an period dominated by machine learning and automation. If rejected, Tesla could potentially face the exit of a pioneering CEO who historically built the corporation synonymous with zero-emission cars.

Historic Targets and Market Capitalization

Upon reaching the lofty objectives outlined in the compensation plan revealed at Tesla's corporate assembly, he could become the first-ever trillionaire. To accomplish this, he must guide Tesla to a staggering $8.5 trillion in market value, which is an eightfold increase its existing market cap. Additionally, he will be required to launch countless driverless automobiles and humanoid robots, while sustaining the financial performance in the hundreds of billions of dollars throughout the coming ten years.

Payment Breakdown

The main goals of the pay package, divided into twelve stages, outline a roadmap for Tesla to achieve its enormous valuation. If successful, Musk would be able to realize gains on an extra 12% of the firm's equity. To qualify, he must stay committed with the company for no less than 7.5 years. Furthermore, he is required to help develop a corporate transition roadmap for the organization he has led for more than 20 years. The equity incentives offered by the updated remuneration deal, in addition to shares guaranteed in his 2018 package, would result in Musk with a quarter stake of Tesla's shares. By the start of November, Tesla stock was trading close to its annual peak, at approximately $450 each share.

Ambitious Targets

Over the course of a decade, Musk will be required to produce 20 million zero-emission cars to consumers, market 10 million operational autonomous driving plans, produce and launch 1 million humanoid robots, and launch 1 million robotaxis in revenue-generating use.

Musk will also be tasked to increase the firm to $400 billion in real profits for four straight quarters. Tesla's actual earnings for the third quarter of 2025 were $4.2 billion, a 9% decrease from the previous year.

In November, Musk's net worth was estimated at $460 billion, the top in the globe, as reported by market tracking.

Reinstating a Revoked Plan

Shareholders are additionally reviewing a plan that would reward Musk after his previous pay package was invalidated by a court in Delaware. The remuneration deal, valued at around $56 billion, was disputed by a sole shareholder who prevailed in court. The Delaware court of chancery dismissed Musk's pay package on two occasions. Upon stockholder approval the plan in the Thursday ballot, Musk is set to be awarded the huge sum regardless of if Tesla and Musk overturn the ruling of the lawsuit.

Subsequent to Musk's 2018 pay package was first rescinded, he transferred Tesla's business registration from Delaware to Texas. He did the same with SpaceX and additional corporate bases. In 2024, according to Texas regulations, shareholders for a second time voted to approve the pay package.

But Delaware's known as "judicial body" again denied one of the biggest CEO compensation packages in contemporary business. In the wake of that negative decision, Musk posted on his accounts to express dissatisfaction with the region and its "activist chief judge", perhaps fueling a wave of business departures that Delaware officials have sought to curb with new laws.

In considering whether Musk had undue influence in being awarded that previous compensation plan, a respected academic expert observed that the court noted that other "superstar CEOs" like the Meta chief and the Amazon founder were not awarded this type of performance-linked deals.