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Tesla shareholders gathered on Thursday to determine on a substantial compensation package for the company's leader valued at nearly $1 trillion. Should it pass, this plan would showcase market faith that the billionaire can steer the vehicle manufacturer into an era dominated by AI technology and advanced machinery. Should it fail, Tesla could potentially face the departure of a pioneering CEO who previously established the company name synonymous with zero-emission cars.

Record-Breaking Goals and Company Valuation

Upon reaching the formidable milestones outlined in the pay package revealed at Tesla's corporate assembly, he could become the world's first person with a trillion-dollar net worth. To accomplish this, he must steer Tesla to a monumental $8.5 trillion in company worth, which is 800% of its present worth. Additionally, he will be tasked to deploy millions self-driving cars and humanoid robots, while sustaining the corporate profits in the hundreds of billions of dollars over the next decade.

Reward System

The primary objectives of the remuneration structure, split into 12 tranches, outline a path for Tesla to reach its massive worth. Should targets be met, Musk would be eligible to cash in an additional 12% of the corporation's shares. To be eligible, he must stay committed with the firm 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 stock options awarded by the updated remuneration deal, alongside shares guaranteed in his previous compensation plan, would grant Musk with a quarter stake of Tesla's stock. In early November, Tesla equity was priced near its 52-week high, at roughly $450 per stock.

Formidable Objectives

Over the course of a decade, Musk will be tasked to manufacture 20 million zero-emission cars to customers, sell 10 million live FSD memberships, create and distribute 1 million advanced androids, and deploy 1 million self-driving cabs in paid operations.

Musk will furthermore be obligated to bring the company to $400 billion in actual earnings for four straight quarters. Tesla's actual earnings for the third quarter of 2025 were $4.2 billion, a 9% decrease from the previous year.

In November, Musk's personal wealth was pegged at $460 billion, the highest in the planet, as reported by market tracking.

Reinstating a Rescinded Package

Shareholders are additionally reviewing a arrangement that would reward Musk after his earlier remuneration deal was invalidated by a judicial body in Delaware. The compensation package, estimated to be $56 billion, was contested by a individual investor who prevailed in court. The state court dismissed Musk's remuneration deal twice. Should investors pass the arrangement in the shareholder meeting, Musk is expected to be awarded the massive amount whether or not Tesla and Musk win an appeal of the lawsuit.

Following Musk's 2018 pay package was first rescinded, he moved Tesla's corporate home from Delaware to Texas. He followed suit with the rocket firm and additional corporate bases. In 2024, according to Texas regulations, shareholders for a second time passed the compensation plan.

But Delaware's known as "court of equity" for a second time rejected one of the most substantial CEO compensation packages in recent times. In the wake of that negative decision, Musk posted on his accounts to express dissatisfaction with the state and its "prominent judicial figure", possibly sparking a number of company relocations that Delaware lawmakers have attempted to staunch with new laws.

In evaluating whether Musk had excessive control in being given that 2018 pay package, a respected law professor observed that the judicial authority acknowledged that other "high-profile executives" like Meta's Mark Zuckerberg and Amazon's Jeff Bezos were not given this kind of incentive-based contracts.