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Tesla shareholders assembled on Thursday to decide on a massive remuneration plan for the company's leader valued at nearly $1 trillion. Upon approval, this package would showcase market faith that the tech magnate can steer the car company into an age shaped by artificial intelligence and automation. If denied, Tesla could risk the exit of a key figure who once made the brand equivalent with electric vehicles.

Record-Breaking Targets and Company Valuation

If the CEO meets the ambitious milestones outlined in the remuneration deal introduced at Tesla's annual meeting, he could be crowned the pioneering trillionaire. For this to happen, he must steer Tesla to a monumental $8.5 trillion in market capitalization, which is eight times its current valuation. Furthermore, he will be tasked to deploy millions self-driving cars and advanced androids, while maintaining the company's bottom line in the massive revenue figures throughout the coming ten years.

Reward System

The main goals of the pay package, organized into twelve stages, chart a roadmap for Tesla to attain its colossal valuation. Should targets be met, Musk would be able to realize gains on an additional 12% of the corporation's shares. To qualify, he must stay committed with the company for no less than 7.5 years. Furthermore, he is required to contribute to forming a future leadership strategy for the business he has led for over 20 years. The share grants provided by the latest pay package, in addition to shares promised in his earlier deal, would result in Musk with 25 percent equity of Tesla's stock. As of early November, Tesla shares were valued near its annual peak, at approximately $450 per stock.

Lofty Goals

Throughout a ten years, Musk will be obligated to manufacture 20 million zero-emission cars to consumers, sell 10 million live FSD memberships, produce and launch 1 million bipedal machines, and launch 1 million robotaxis in commercial service.

Musk will additionally be tasked to increase the firm to $400 billion in actual earnings for a full year. Tesla's tangible revenue for the third quarter of 2025 were $4.2 billion, 9 percent lower from the previous year.

As of November, Musk's personal wealth was estimated at $460 billion, the leading in the world, based on financial data.

Reinstating a Rescinded Deal

Investors are additionally reviewing a plan that would remunerate Musk after his 2018 compensation plan was overturned by a court in Delaware. The compensation package, worth an estimated $56 billion, was disputed by a individual investor who prevailed in court. The Delaware court of chancery dismissed Musk's compensation plan on multiple instances. If shareholders approve the proposal in the shareholder meeting, Musk is likely to be paid the huge sum whether or not Tesla and Musk succeed in appealing of the lawsuit.

Following Musk's 2018 pay package was originally overturned, he relocated Tesla's corporate home out of Delaware and into Texas. He repeated the action with the rocket firm and other business entities. In 2024, according to Texas regulations, shareholders again passed the remuneration deal.

But Delaware's often referred to as "judicial body" once again rejected one of the most substantial CEO compensation packages in recent times. After that unfavorable ruling, Musk used online platforms to express dissatisfaction with the jurisdiction and its "activist chief judge", arguably igniting a wave of business departures that Delaware lawmakers have attempted to staunch with new laws.

In considering whether Musk had undue influence in being awarded that earlier remuneration deal, a prominent legal scholar remarked that the judge recognized that other "high-profile executives" like Meta's Mark Zuckerberg and Amazon's Jeff Bezos were not given this type of goal-oriented agreements.