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Investors in the electric car maker assembled this Thursday to vote on a enormous pay deal for the company's leader worth approximately around $1 trillion. Upon approval, this deal would signal shareholder trust that the billionaire can steer the car company into an period defined by AI technology and robotics. If rejected, Tesla could potentially face the departure of a pioneering CEO who historically built the brand synonymous with zero-emission cars.

Historic Goals and Company Valuation

Should Musk achieve the ambitious objectives outlined in the remuneration deal introduced at Tesla's corporate assembly, he could emerge as the first-ever trillionaire. For this to happen, he must steer Tesla to a staggering $8.5 trillion in company worth, which is eight times its current valuation. Moreover, he will be tasked to deploy millions autonomous vehicles and advanced androids, while sustaining the company's bottom line in the massive revenue figures in the upcoming decade.

Compensation Structure

The main goals of the remuneration structure, organized into 12 tranches, delineate a roadmap for Tesla to achieve its colossal worth. Should targets be met, Musk would be in a position to benefit from an additional 12% of the firm's equity. To qualify, he must maintain involvement with the corporation for at least 7.5 years. He will also contribute to forming a corporate transition roadmap for the business he has led for more than 20 years. The share grants provided by the new compensation plan, alongside shares assured in his 2018 package, would result in Musk with a quarter stake of Tesla's shares. In early November, Tesla shares were valued approaching its 52-week high, at around $450 per stock.

Ambitious Targets

During a ten-year period, Musk will be obligated to manufacture 20 million EVs to consumers, sell 10 million active full self-driving subscriptions, produce and launch 1 million advanced androids, and introduce 1 million robotaxis in paid operations.

Musk will additionally be obligated to elevate the corporation to $400 billion in tangible revenue for four consecutive quarters. Tesla's actual earnings for the third quarter of 2025 were $4.2 billion, down 9% from the previous year.

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

Reviving a Invalidated Plan

Shareholders are also reviewing a arrangement that would remunerate Musk after his 2018 compensation plan was invalidated by a court in Delaware. The compensation package, worth an estimated $56 billion, was disputed by a individual investor who won his case. The Delaware judicial system dismissed Musk's pay package on multiple instances. Should investors pass the plan in the Thursday ballot, Musk is likely to be paid the massive amount regardless of if Tesla and Musk win an appeal of the case.

Subsequent to Musk's earlier remuneration deal was first rescinded, he relocated Tesla's corporate home out of Delaware and into Texas. He followed suit with the rocket firm and additional corporate bases. In 2024, according to Texas regulations, shareholders again approved the compensation plan.

But Delaware's so-called "equity court" for a second time denied one of the most substantial CEO payouts in contemporary business. Following that negative decision, Musk posted on his accounts to voice displeasure with the jurisdiction and its "activist chief judge", possibly igniting a wave of business departures that Delaware lawmakers have attempted to staunch with legislation.

In evaluating whether Musk had improper sway in being awarded that earlier remuneration deal, a noted academic expert commented that the judge acknowledged that other "superstar CEOs" like Meta's Mark Zuckerberg and the e-commerce pioneer were not given this type of performance-linked deals.