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Tesla shareholders gathered this Thursday to vote on a substantial remuneration plan for CEO Elon Musk valued at around $1 trillion. If approved, this plan would showcase shareholder trust that the billionaire can lead the automaker into an period defined by AI technology and advanced machinery. If rejected, Tesla could confront the exit of a key figure who historically built the company name interchangeable with electric vehicles.

Historic Goals and Company Valuation

Upon reaching the lofty targets specified in the pay package introduced at Tesla's shareholder gathering, he could become the world's first trillionaire. To reach this goal, he must guide Tesla to a monumental $8.5 trillion in company worth, which is eight times its existing market cap. Moreover, he will be obligated to roll out millions autonomous vehicles and humanoid robots, while maintaining the financial performance in the hundreds of billions throughout the coming ten years.

Compensation Structure

The main goals of the remuneration structure, organized into twelve stages, chart a roadmap for Tesla to achieve its massive worth. If successful, Musk would be eligible to cash in an additional 12% of the firm's equity. To be eligible, he must remain vested with the company for no less than 7.5 years. Furthermore, he is required to contribute to forming a future leadership strategy for the business he has led for over 20 years. The stock options provided by the updated remuneration deal, in addition to shares assured in his earlier deal, would result in Musk with a quarter stake of Tesla's stock. By the start of November, Tesla shares were valued approaching its yearly maximum, at approximately $450 per stock.

Lofty Goals

Over the course of a decade, Musk will be tasked to produce 20 million EVs to customers, sell 10 million active full self-driving subscriptions, create and distribute 1 million humanoid robots, and launch 1 million robotaxis in commercial service.

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

By November, Musk's net worth was valued at $460 billion, the top in the world, according to wealth indexes.

Reviving a Revoked Package

Shareholders are furthermore reviewing a plan that would reward Musk after his previous pay package was overturned by a court in Delaware. The remuneration deal, worth an estimated $56 billion, was contested by a sole shareholder who won his case. The Delaware court of chancery denied Musk's pay package on multiple instances. If shareholders approve the plan in Thursday's vote, Musk is set to be paid the substantial payout whether or not Tesla and Musk succeed in appealing of the case.

After Musk's 2018 pay package was originally overturned, he moved Tesla's legal headquarters out of Delaware and into Texas. He did the same with the rocket firm and additional corporate bases. In the previous year, according to Texas regulations, shareholders again passed the pay package.

But Delaware's often referred to as "equity court" again rejected one of the biggest CEO payouts in recent times. After that unfavorable ruling, Musk took to social media to voice displeasure with the jurisdiction and its "activist chief judge", arguably sparking a wave of business departures that Delaware legislators have attempted to staunch with new laws.

In reviewing whether Musk had excessive control in being awarded that earlier remuneration deal, a prominent legal scholar commented that the judge acknowledged that other "high-profile executives" like Facebook's founder and Amazon's Jeff Bezos were not awarded this type of incentive-based contracts.