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Investors in the electric car maker gathered on Thursday to vote on a enormous remuneration plan for the company's leader estimated at nearly $1 trillion. Upon approval, this package would signal investor confidence that the tech magnate can lead the automaker into an era shaped by AI technology and advanced machinery. Should it fail, Tesla could risk the exit of a pioneering CEO who historically built the brand synonymous with EVs.

Historic Milestones and Market Capitalization

Upon reaching the ambitious targets outlined in the compensation plan revealed at Tesla's shareholder gathering, he could be crowned the first-ever trillionaire. For this to happen, he must guide Tesla to a staggering $8.5 trillion in market capitalization, which is an eightfold increase its current valuation. Additionally, he will be required to roll out millions driverless automobiles and advanced androids, while maintaining the company's bottom line in the massive revenue figures over the next decade.

Compensation Structure

The primary objectives of the compensation plan, divided into 12 tranches, chart a trajectory for Tesla to reach its enormous valuation. Should targets be met, Musk would be able to cash in an extra 12% of the company's stock. To be eligible, he must remain vested with the company for no less than 7.5 years. Additionally, he must help develop a corporate transition roadmap for the organization he has managed for over 20 years. The share grants awarded by the updated remuneration deal, combined with shares guaranteed in his 2018 package, would result in Musk with 25% ownership of Tesla's shares. As of early November, Tesla stock was trading close to its annual peak, at approximately $450 each share.

Lofty Goals

Throughout a decade, Musk will be obligated to produce 20 million EVs to customers, market 10 million active full self-driving subscriptions, develop and sell 1 million advanced androids, and launch 1 million autonomous taxis in paid operations.

Musk will additionally be tasked to elevate the corporation to $400 billion in actual earnings for a full year. Tesla's actual earnings for the Q3 2025 were $4.2 billion, down 9% from the previous year.

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

Restoring a Revoked Plan

Shareholders are also evaluating a proposal that would reward Musk after his 2018 compensation plan was overturned by a judicial body in Delaware. The compensation package, valued at around $56 billion, was disputed by a individual investor who won his case. The state court dismissed Musk's remuneration deal twice. If shareholders approve the arrangement in Thursday's vote, Musk is likely to be paid the huge sum irrespective of whether Tesla and Musk win an appeal of the lawsuit.

After Musk's 2018 pay package was initially invalidated, he relocated Tesla's legal headquarters out of Delaware and into Texas. He did the same with the rocket firm and other companies' headquarters. In last year, according to Texas regulations, shareholders again passed the remuneration deal.

But Delaware's known as "court of equity" once again rejected one of the biggest CEO compensation packages in recent times. After that negative decision, Musk posted on his accounts to express dissatisfaction with the region and its "prominent judicial figure", arguably igniting a wave of business departures that Delaware lawmakers have attempted to staunch with legislation.

In reviewing whether Musk had undue influence in being given that previous compensation plan, a respected academic expert observed that the judge recognized that other "celebrity leaders" like the Meta chief and the e-commerce pioneer were not granted this kind of performance-linked deals.