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Investors in the electric car maker gathered on Thursday to decide on a substantial remuneration plan for the company's leader estimated at close to $1 trillion. If approved, this deal would signal market faith that the billionaire can guide the vehicle manufacturer into an age defined by machine learning and automation. If denied, Tesla could confront the loss of a key figure who once made the company name synonymous with EVs.

Record-Breaking Milestones and Market Capitalization

Upon reaching the lofty objectives specified in the pay package presented at Tesla's corporate assembly, he could become the first-ever person with a trillion-dollar net worth. To accomplish this, he must guide Tesla to a astronomical $8.5 trillion in market value, which is 800% of its current valuation. Furthermore, he will be obligated to launch numerous autonomous vehicles and advanced androids, while maintaining the company's bottom line in the massive revenue figures throughout the coming ten years.

Reward System

The primary objectives of the compensation plan, split into a dozen phases, outline a roadmap for Tesla to achieve its enormous market capitalization. If successful, Musk would be in a position to realize gains on an further 12% of the firm's equity. For this to occur, he must stay committed with the corporation for a minimum of 7.5 years. Furthermore, he is required to assist in creating a future leadership strategy for the organization he has managed for more than 20 years. The stock options awarded by the updated remuneration deal, alongside shares assured in his previous compensation plan, would grant Musk with a quarter stake of Tesla's stock. By the start of November, Tesla equity was priced approaching its yearly maximum, at around $450 each share.

Lofty Goals

Over the course of a ten-year period, Musk will be required to manufacture 20 million EVs to consumers, market 10 million live FSD memberships, create and distribute 1 million humanoid robots, and introduce 1 million self-driving cabs in commercial service.

Musk will furthermore be obligated to increase the corporation to $400 billion in real profits for four straight quarters. Tesla's real profits for the Q3 2025 were $4.2 billion, a 9% decrease from the same period last year.

As of November, Musk's net worth was pegged at $460 billion, the leading in the world, according to market tracking.

Reviving a Invalidated Plan

Shareholders are additionally evaluating a plan that would reward Musk after his 2018 compensation plan was voided by a legal authority in Delaware. The compensation package, worth an estimated $56 billion, was contested by a single stockholder who won his case. The state court rejected Musk's remuneration deal on two occasions. Upon stockholder approval the proposal in the shareholder meeting, Musk is expected to be awarded the huge sum irrespective of whether Tesla and Musk win an appeal of the legal matter.

After Musk's earlier remuneration deal was first rescinded, he transferred Tesla's business registration out of Delaware and into Texas. He repeated the action with his aerospace company and additional corporate bases. In the previous year, according to Texas regulations, shareholders again voted to approve the compensation plan.

But Delaware's so-called "judicial body" again ruled against one of the most substantial CEO compensation packages in contemporary business. After that adverse judgment, Musk used online platforms to voice displeasure with the region and its "activist chief judge", perhaps igniting a series of corporate exits that Delaware legislators have tried to stop with regulatory measures.

In evaluating whether Musk had improper sway in being given that previous compensation plan, a respected law professor observed that the judge noted that other "celebrity leaders" like Facebook's founder and Amazon's Jeff Bezos were not awarded this kind of goal-oriented agreements.