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Investors in the electric car maker gathered on Thursday to vote on a enormous compensation package for the company's leader valued at close to $1 trillion. If approved, this plan would signal market faith that the billionaire can steer the vehicle manufacturer into an period shaped by AI technology and automation. If rejected, Tesla could risk the departure of a pioneering CEO who historically built the company name equivalent with EVs.

Record-Breaking Targets and Company Valuation

Upon reaching the ambitious milestones specified in the compensation plan revealed at Tesla's corporate assembly, he could be crowned the pioneering person with a trillion-dollar net worth. To accomplish this, he must guide Tesla to a astronomical $8.5 trillion in market capitalization, which is an eightfold increase its present worth. Moreover, he will be obligated to launch numerous driverless automobiles and advanced androids, while maintaining the company's bottom line in the hundreds of billions of dollars throughout the coming ten years.

Payment Breakdown

The key aims of the pay package, divided into 12 tranches, chart a path for Tesla to attain its colossal worth. Upon achievement, Musk would be eligible to benefit from an further 12% of the company's stock. To qualify, he must remain vested with the corporation for no less than 7.5 years. He will also help develop a long-term succession plan for the enterprise he has led for more than 20 years. The stock options awarded by the updated remuneration deal, alongside shares assured in his 2018 package, would leave Musk with a quarter stake of Tesla's shares. By the start of November, Tesla shares were valued close to its yearly maximum, at around $450 per share.

Ambitious Targets

Over the course of a decade, Musk will be required to manufacture 20 million zero-emission cars to customers, market 10 million live FSD memberships, develop and sell 1 million humanoid robots, and deploy 1 million robotaxis in revenue-generating use.

Musk will furthermore be obligated to elevate the corporation to $400 billion in tangible revenue for four consecutive quarters. Tesla's real profits for the July-September 2025 were $4.2 billion, a 9% decrease from the year before.

As of November, Musk's net worth was valued at $460 billion, the top in the world, according to market tracking.

Restoring a Rescinded Deal

Stockholders are additionally considering a plan that would reward Musk after his previous pay package was voided by a court in Delaware. The compensation package, valued at around $56 billion, was contested by a individual investor who succeeded legally. The state court denied Musk's remuneration deal twice. If shareholders approve the plan in Thursday's vote, Musk is set to be awarded the substantial payout whether or not Tesla and Musk win an appeal of the lawsuit.

Subsequent to Musk's earlier remuneration deal was originally overturned, he moved Tesla's corporate home to Texas from Delaware. He followed suit with the rocket firm and other business entities. In 2024, per Texas statutes, shareholders again passed the remuneration deal.

But Delaware's so-called "judicial body" once again rejected one of the largest CEO payouts in modern history. In the wake of that negative decision, Musk posted on his accounts to voice displeasure with the state and its "activist chief judge", possibly sparking a number of company relocations that Delaware legislators have sought to curb with new laws.

In considering whether Musk had undue influence in being given that 2018 pay package, a prominent legal scholar observed that the court acknowledged that other "celebrity leaders" like the Meta chief and the Amazon founder were not given this type of performance-linked deals.