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Tesla shareholders assembled on Thursday to decide on a enormous remuneration plan for CEO Elon Musk worth approximately around $1 trillion. Upon approval, this package would showcase investor confidence that the tech magnate can steer the automaker into an age defined by machine learning and robotics. Should it fail, Tesla could risk the exit of a visionary leader who previously established the company name interchangeable with electric vehicles.

Historic Goals and Market Capitalization

If the CEO meets the lofty objectives outlined in the compensation plan introduced at Tesla's annual meeting, he could be crowned the world's first trillionaire. To reach this goal, he must steer Tesla to a astronomical $8.5 trillion in market capitalization, which is an eightfold increase its existing market cap. Furthermore, he will be obligated to launch millions self-driving cars and advanced androids, while upholding the financial performance in the hundreds of billions in the upcoming decade.

Payment Breakdown

The key aims of the remuneration structure, organized into a dozen phases, chart a roadmap for Tesla to reach its massive valuation. Upon achievement, Musk would be eligible to realize gains on an additional 12% of the firm's equity. For this to occur, he must remain vested with the company for no less than 7.5 years. Furthermore, he is required to contribute to forming a corporate transition roadmap for the business he has headed for over 20 years. The share grants provided by the updated remuneration deal, in addition to shares guaranteed in his previous compensation plan, would leave Musk with 25 percent equity of Tesla's stock. By the start of November, Tesla stock was trading near its yearly maximum, at around $450 each share.

Ambitious Targets

During a ten years, Musk will be tasked to deliver 20 million EVs to customers, sell 10 million active full self-driving subscriptions, create and distribute 1 million humanoid robots, and introduce 1 million robotaxis in revenue-generating use.

Musk will also be obligated to bring the company to $400 billion in actual earnings for four consecutive quarters. Tesla's tangible revenue for the third quarter of 2025 were $4.2 billion, 9 percent lower from the same period last year.

By November, Musk's fortune was valued at $460 billion, the leading in the world, based on market tracking.

Reinstating a Revoked Plan

Stockholders are also evaluating a proposal that would reward Musk after his 2018 compensation plan was voided by a judicial body in Delaware. The remuneration deal, estimated to be $56 billion, was challenged by a sole shareholder who succeeded legally. The state court dismissed Musk's remuneration deal on multiple instances. Should investors pass the plan in the shareholder meeting, Musk is set to be granted the substantial payout regardless of if Tesla and Musk overturn the ruling of the case.

After Musk's earlier remuneration deal was originally overturned, he relocated Tesla's corporate home to Texas from Delaware. He repeated the action with the rocket firm and other business entities. In last year, under Texas law, shareholders for a second time approved the compensation plan.

But Delaware's known as "court of equity" once again denied one of the most substantial CEO payouts in recent times. After that unfavorable ruling, Musk used online platforms to voice displeasure with the jurisdiction and its "activist chief judge", possibly fueling a series of corporate exits that Delaware officials have attempted to staunch with new laws.

In reviewing whether Musk had undue influence in being granted that 2018 pay package, a respected law professor remarked that the judge noted that other "celebrity leaders" like Meta's Mark Zuckerberg and Amazon's Jeff Bezos were not given this type of performance-linked deals.