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Tesla shareholders convened this Thursday to vote on a massive remuneration plan for the company's leader worth approximately around $1 trillion. Should it pass, this package would showcase shareholder trust that the tech magnate can steer the automaker into an era defined by machine learning and advanced machinery. Should it fail, Tesla could confront the exit of a key figure who historically built the brand equivalent with electric vehicles.

Record-Breaking Milestones and Market Capitalization

If the CEO meets the formidable targets outlined in the compensation plan presented at Tesla's shareholder gathering, he could be crowned the first-ever person with a trillion-dollar net worth. For this to happen, he must guide Tesla to a staggering $8.5 trillion in market value, which is eight times its existing market cap. Furthermore, he will be tasked to deploy countless self-driving cars and humanoid robots, while upholding the financial performance in the massive revenue figures throughout the coming ten years.

Reward System

The main goals of the compensation plan, organized into a dozen phases, outline a trajectory for Tesla to attain its massive valuation. If successful, Musk would be able to benefit from an additional 12% of the corporation's shares. For this to occur, he must remain vested with the firm for no less than 7.5 years. Furthermore, he is required to contribute to forming a long-term succession plan for the organization he has headed for over 20 years. The equity incentives awarded by the new compensation plan, alongside shares assured in his 2018 package, would result in Musk with 25 percent equity of Tesla's shares. In early November, Tesla stock was trading near its 52-week high, at around $450 each share.

Ambitious Targets

During a decade, Musk will be tasked to produce 20 million electric vehicles to buyers, market 10 million active full self-driving subscriptions, produce and launch 1 million advanced androids, and launch 1 million robotaxis in revenue-generating use.

Musk will also be tasked to bring the corporation to $400 billion in tangible revenue for a full year. Tesla's actual earnings for the third quarter of 2025 were $4.2 billion, down 9% from the same period last year.

As of November, Musk's fortune was valued at $460 billion, the top in the globe, as reported by financial data.

Restoring a Invalidated Package

Investors are also reviewing a proposal that would remunerate Musk after his previous pay package was invalidated by a court in Delaware. The remuneration deal, estimated to be $56 billion, was challenged by a individual investor who prevailed in court. The Delaware court of chancery dismissed Musk's pay package twice. If shareholders approve the plan in Thursday's vote, Musk is expected to be awarded the massive amount whether or not Tesla and Musk overturn the ruling of the legal matter.

After Musk's previous compensation plan was initially invalidated, he moved Tesla's business registration to Texas from Delaware. He followed suit with his aerospace company and other companies' headquarters. In last year, per Texas statutes, shareholders once again voted to approve the compensation plan.

But Delaware's so-called "court of equity" once again denied 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 jurisdiction and its "influential presiding justice", perhaps fueling a series of corporate exits that Delaware lawmakers have attempted to staunch with legislation.

In reviewing whether Musk had improper sway in being awarded that earlier remuneration deal, a prominent legal scholar remarked that the court acknowledged that other "superstar CEOs" like Meta's Mark Zuckerberg and Amazon's Jeff Bezos were not awarded this sort of incentive-based contracts.