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Tesla shareholders convened this Thursday to decide on a substantial remuneration plan for Chief Executive Elon Musk estimated at close to $1 trillion. If approved, this deal would showcase market faith that the billionaire can steer the automaker into an age dominated by machine learning and automation. Should it fail, Tesla could risk the exit of a pioneering CEO who historically built the brand synonymous with electric vehicles.

Historic Targets and Company Valuation

If the CEO meets the ambitious milestones outlined in the pay package presented at Tesla's corporate assembly, he could be crowned the world's first 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 an eightfold increase its current valuation. Additionally, he will be required to launch numerous self-driving cars and bipedal machines, while upholding the financial performance in the massive revenue figures in the upcoming decade.

Reward System

The main goals of the remuneration structure, organized into twelve stages, outline a path for Tesla to achieve its enormous worth. Should targets be met, Musk would be able to realize gains on an further 12% of the corporation's shares. To qualify, he must stay committed with the company for a minimum of 7.5 years. Furthermore, he is required to help develop a corporate transition roadmap for the organization he has headed for more than 20 years. The stock options offered by the new compensation plan, alongside shares guaranteed in his previous compensation plan, would grant Musk with a quarter stake of Tesla's shares. In early November, Tesla stock was trading close to its yearly maximum, at approximately $450 per stock.

Lofty Goals

Over the course of a ten years, Musk will be tasked to produce 20 million electric vehicles to customers, sell 10 million live FSD memberships, develop and sell 1 million advanced androids, and introduce 1 million autonomous taxis in paid operations.

Musk will furthermore be required to elevate the firm to $400 billion in real profits for a full year. Tesla's real profits for the Q3 2025 were $4.2 billion, a 9% decrease from the year before.

As of November, Musk's personal wealth was valued at $460 billion, the top in the planet, based on wealth indexes.

Restoring a Revoked Deal

Stockholders are also considering a arrangement that would reward Musk after his previous pay package was voided by a judicial body in Delaware. The remuneration deal, estimated to be $56 billion, was challenged by a individual investor who won his case. The Delaware judicial system dismissed Musk's remuneration deal twice. Upon stockholder approval the plan in the shareholder meeting, Musk is set to be granted the huge sum regardless of if Tesla and Musk succeed in appealing of the case.

Subsequent to Musk's 2018 pay package was first rescinded, he moved Tesla's business registration from Delaware to Texas. He repeated the action with SpaceX and other business entities. In 2024, per Texas statutes, shareholders for a second time voted to approve the compensation plan.

But Delaware's so-called "court of equity" again ruled against one of the biggest CEO payouts in contemporary business. After that adverse judgment, Musk used online platforms to express dissatisfaction with the state and its "prominent judicial figure", arguably igniting a series of corporate exits that Delaware legislators have tried to stop with new laws.

In considering whether Musk had excessive control in being awarded that earlier remuneration deal, a respected law professor observed that the judge noted that other "celebrity leaders" like Meta's Mark Zuckerberg and Amazon's Jeff Bezos were not given this type of incentive-based contracts.