🔗 Share this article

Tesla shareholders gathered on Thursday to decide on a enormous remuneration plan for Chief Executive Elon Musk worth approximately around $1 trillion. Upon approval, this package would demonstrate market faith that the billionaire can guide the car company into an era shaped by artificial intelligence and advanced machinery. If rejected, Tesla could confront the exit of a key figure who previously established the brand interchangeable with electric vehicles.

Historic Targets and Market Capitalization

If the CEO meets the formidable targets detailed in the compensation plan introduced at Tesla's corporate assembly, he could be crowned the world's first trillionaire. To reach this goal, he must guide Tesla to a monumental $8.5 trillion in market capitalization, which is an eightfold increase its present worth. Moreover, he will be obligated to deploy numerous autonomous vehicles and bipedal machines, while maintaining the financial performance in the hundreds of billions of dollars throughout the coming ten years.

Reward System

The key aims of the compensation plan, divided into a dozen phases, chart a roadmap for Tesla to achieve its colossal worth. Should targets be met, Musk would be able to realize gains on an additional 12% of the firm's equity. To be eligible, he must maintain involvement with the company for no less than 7.5 years. He will also help develop a corporate transition roadmap for the business he has headed for over 20 years. The share grants provided by the updated remuneration deal, combined with shares promised in his previous compensation plan, would leave Musk with 25% ownership of Tesla's stock. As of early November, Tesla stock was trading near its yearly maximum, at around $450 each share.

Lofty Goals

During a ten-year period, Musk will be tasked to produce 20 million zero-emission cars to customers, market 10 million operational autonomous driving plans, produce and launch 1 million humanoid robots, and deploy 1 million robotaxis in revenue-generating use.

Musk will also be tasked to elevate the company to $400 billion in tangible revenue for four straight quarters. Tesla's tangible revenue for the Q3 2025 were $4.2 billion, down 9% from the year before.

In November, Musk's fortune was pegged at $460 billion, the leading in the globe, according to wealth indexes.

Restoring a Revoked Plan

Stockholders are also evaluating a proposal that would remunerate Musk after his earlier remuneration deal was overturned by a judicial body in Delaware. The pay plan, estimated to be $56 billion, was disputed by a sole shareholder who succeeded legally. The Delaware judicial system denied Musk's remuneration deal twice. If shareholders approve the proposal in the Thursday ballot, Musk is expected to be paid the massive amount regardless of if Tesla and Musk overturn the ruling of the case.

Subsequent to Musk's previous compensation plan was initially invalidated, he moved Tesla's business registration to Texas from Delaware. He followed suit with SpaceX and other business entities. In last year, per Texas statutes, shareholders once again passed the pay package.

But Delaware's known as "judicial body" again rejected one of the biggest CEO pay deals in modern history. After that negative decision, Musk used online platforms to voice displeasure with the state and its "influential presiding justice", arguably igniting a number of company relocations that Delaware lawmakers have attempted to staunch with regulatory measures.

In evaluating whether Musk had undue influence in being awarded that 2018 pay package, a respected legal scholar commented that the judge recognized that other "celebrity leaders" like Meta's Mark Zuckerberg and the Amazon founder were not granted this kind of incentive-based contracts.