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Tesla shareholders assembled on Thursday to vote on a enormous remuneration plan for the company's leader valued at nearly $1 trillion. If approved, this deal would showcase investor confidence that the entrepreneur can steer the car company into an age shaped by AI technology and advanced machinery. If denied, Tesla could potentially face the exit of a pioneering CEO who once made the company name interchangeable with EVs.

Record-Breaking Milestones and Company Valuation

If the CEO meets the formidable objectives outlined in the pay package presented at Tesla's corporate assembly, he could become the first-ever trillionaire. To accomplish this, he must steer Tesla to a astronomical $8.5 trillion in market value, which is an eightfold increase its existing market cap. Moreover, he will be tasked to roll out countless self-driving cars and humanoid robots, while sustaining the company's bottom line in the massive revenue figures over the next decade.

Reward System

The main goals of the compensation plan, divided into 12 tranches, chart a path for Tesla to reach its enormous valuation. Upon achievement, Musk would be in a position to realize gains on an extra 12% of the firm's equity. To qualify, he must maintain involvement with the firm for a minimum of 7.5 years. He will also contribute to forming a long-term succession plan for the business he has headed for over 20 years. The stock options offered by the new compensation plan, combined with shares promised in his 2018 package, would grant Musk with 25 percent equity of Tesla's stock. By the start of November, Tesla stock was trading close to its 52-week high, at around $450 each share.

Ambitious Targets

Throughout a ten years, Musk will be tasked to produce 20 million electric vehicles to consumers, distribute 10 million live FSD memberships, develop and sell 1 million bipedal machines, and introduce 1 million self-driving cabs in paid operations.

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

In November, Musk's personal wealth was pegged at $460 billion, the leading in the planet, based on market tracking.

Restoring a Revoked Deal

Investors are also considering a plan that would compensate Musk after his previous pay package was voided by a judicial body in Delaware. The compensation package, worth an estimated $56 billion, was contested by a sole shareholder who won his case. The Delaware judicial system denied Musk's pay package twice. Should investors pass the plan in Thursday's vote, Musk is likely to be awarded the huge sum irrespective of whether Tesla and Musk succeed in appealing of the case.

After Musk's earlier remuneration deal was initially invalidated, he moved Tesla's corporate home out of Delaware and into Texas. He repeated the action with his aerospace company and additional corporate bases. In last year, under Texas law, shareholders again passed the remuneration deal.

But Delaware's so-called "equity court" again ruled against one of the largest CEO compensation packages in modern history. In the wake of that negative decision, Musk took to social media to express dissatisfaction with the region and its "activist chief judge", possibly fueling a wave of business departures that Delaware legislators have tried to stop with new laws.

In evaluating whether Musk had undue influence in being given that 2018 pay package, a prominent law professor observed that the court recognized that other "celebrity leaders" like the Meta chief and Amazon's Jeff Bezos were not given this type of goal-oriented agreements.