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Investors in the electric car maker assembled this Thursday to decide on a massive remuneration plan for Chief Executive Elon Musk estimated at close to $1 trillion. If approved, this deal would showcase market faith that the billionaire can steer the vehicle manufacturer into an era shaped by artificial intelligence and advanced machinery. Should it fail, Tesla could risk the exit of a visionary leader who once made the brand synonymous with electric vehicles.

Historic Goals and Market Capitalization

Should Musk achieve the ambitious objectives detailed in the remuneration deal introduced at Tesla's annual meeting, he could be crowned the world's first person with a trillion-dollar net worth. To reach this goal, he must steer Tesla to a monumental $8.5 trillion in company worth, which is an eightfold increase its current valuation. Moreover, he will be obligated to deploy countless self-driving cars and bipedal machines, while sustaining the corporate profits in the hundreds of billions of dollars throughout the coming ten years.

Payment Breakdown

The key aims of the compensation plan, divided into 12 tranches, chart a roadmap for Tesla to achieve its enormous worth. Should targets be met, Musk would be eligible to benefit from an additional 12% of the company's stock. To qualify, he must remain vested with the company for a minimum of 7.5 years. Additionally, he must assist in creating a future leadership strategy for the organization he has led for more than 20 years. The share grants offered by the updated remuneration deal, combined with shares guaranteed in his earlier deal, would grant Musk with a quarter stake of Tesla's stock. By the start of November, Tesla stock was trading close to its annual peak, at around $450 per stock.

Ambitious Targets

Over the course of a ten years, Musk will be tasked to deliver 20 million EVs to buyers, sell 10 million operational autonomous driving plans, create and distribute 1 million advanced androids, and introduce 1 million self-driving cabs in revenue-generating use.

Musk will also be obligated to elevate the firm to $400 billion in actual earnings for four consecutive quarters. Tesla's tangible revenue for the third quarter of 2025 were $4.2 billion, a 9% decrease from the previous year.

By November, Musk's net worth was valued at $460 billion, the top in the world, as reported by market tracking.

Restoring a Revoked Plan

Shareholders are additionally considering a arrangement that would compensate Musk after his previous pay package was voided by a court in Delaware. The pay plan, worth an estimated $56 billion, was contested by a sole shareholder who prevailed in court. The Delaware court of chancery dismissed Musk's compensation plan on two occasions. If shareholders approve the plan in Thursday's vote, Musk is set to be awarded the substantial payout irrespective of whether Tesla and Musk succeed in appealing of the case.

After Musk's earlier remuneration deal was first rescinded, he moved Tesla's business registration out of Delaware and into Texas. He repeated the action with his aerospace company and other business entities. In 2024, according to Texas regulations, shareholders again passed the remuneration deal.

But Delaware's so-called "court of equity" once again denied one of the most substantial CEO payouts in recent times. In the wake of that unfavorable ruling, Musk took to social media to express dissatisfaction with the jurisdiction and its "influential presiding justice", arguably sparking a wave of business departures that Delaware legislators have attempted to staunch with new laws.

In reviewing whether Musk had improper sway in being awarded that previous compensation plan, a respected law professor commented that the judge noted that other "high-profile executives" like Facebook's founder and the e-commerce pioneer were not given this type of goal-oriented agreements.