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Investors in the electric car maker assembled this Thursday to decide on a substantial pay deal for the company's leader worth approximately close to $1 trillion. If approved, this plan would demonstrate shareholder trust that the tech magnate can steer the automaker into an era dominated by machine learning and advanced machinery. Should it fail, Tesla could potentially face the exit of a pioneering CEO who once made the brand synonymous with EVs.

Historic Targets and Company Valuation

If the CEO meets the formidable objectives specified in the pay package introduced at Tesla's shareholder gathering, 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 astronomical $8.5 trillion in market value, which is an eightfold increase its present worth. Furthermore, he will be required to launch countless driverless automobiles and humanoid robots, while sustaining the financial performance in the massive revenue figures over the next decade.

Reward System

The key aims of the remuneration structure, divided into twelve stages, chart a path for Tesla to reach its massive market capitalization. Upon achievement, Musk would be in a position to realize gains on an further 12% of the firm's equity. To be eligible, he must stay committed with the corporation for a minimum of 7.5 years. Additionally, he must help develop a long-term succession plan for the business he has headed for over 20 years. The stock options offered by the latest pay package, combined with shares assured in his previous compensation plan, would leave Musk with a quarter stake of Tesla's stock. In early November, Tesla equity was priced approaching its 52-week high, at around $450 per stock.

Lofty Goals

During a ten years, Musk will be required to deliver 20 million zero-emission cars to customers, market 10 million live FSD memberships, develop and sell 1 million bipedal machines, and introduce 1 million autonomous taxis in commercial service.

Musk will furthermore be tasked to increase the firm to $400 billion in actual earnings for a full year. Tesla's real profits for the July-September 2025 were $4.2 billion, 9 percent lower from the year before.

By November, Musk's fortune was pegged at $460 billion, the leading in the world, as reported by wealth indexes.

Restoring a Rescinded Plan

Investors are furthermore considering a proposal that would remunerate Musk after his earlier remuneration deal was voided by a court in Delaware. The remuneration deal, estimated to be $56 billion, was challenged by a individual investor who won his case. The state court rejected Musk's remuneration deal on two occasions. Should investors pass the plan in the Thursday ballot, Musk is set to be paid the huge sum whether or not Tesla and Musk overturn the ruling of the lawsuit.

Following Musk's earlier remuneration deal was first rescinded, he transferred Tesla's corporate home from Delaware to Texas. He followed suit with SpaceX and other companies' headquarters. In 2024, per Texas statutes, shareholders once again passed the compensation plan.

But Delaware's often referred to as "court of equity" again ruled against one of the biggest CEO pay deals in modern history. Following that unfavorable ruling, Musk took to social media to express dissatisfaction with the state and its "activist chief judge", arguably sparking a number of company relocations that Delaware lawmakers have sought to curb with legislation.

In considering whether Musk had improper sway in being awarded that previous compensation plan, a prominent legal scholar observed that the court recognized that other "celebrity leaders" like the Meta chief and Amazon's Jeff Bezos were not granted this kind of performance-linked deals.