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Investors in the electric car maker assembled this Thursday to decide on a substantial compensation package for CEO Elon Musk valued at close to $1 trillion. Upon approval, this plan would showcase investor confidence that the tech magnate can guide the car company into an period defined by AI technology and robotics. If rejected, Tesla could risk the departure of a pioneering CEO who once made the brand interchangeable with zero-emission cars.

Record-Breaking Milestones and Company Valuation

If the CEO meets the formidable targets detailed in the remuneration deal revealed at Tesla's shareholder gathering, he could become the pioneering person with a trillion-dollar net worth. To reach this goal, he must steer Tesla to a astronomical $8.5 trillion in market value, which is an eightfold increase its present worth. Additionally, he will be tasked to roll out millions autonomous vehicles and advanced androids, while sustaining the company's bottom line in the massive revenue figures in the upcoming decade.

Reward System

The key aims of the remuneration structure, split into twelve stages, delineate a path for Tesla to attain its enormous market capitalization. Upon achievement, Musk would be in a position to benefit from an additional 12% of the firm's equity. For this to occur, he must stay committed with the company for at least 7.5 years. Furthermore, he is required to help develop a future leadership strategy for the enterprise he has managed for over 20 years. The share grants offered by the updated remuneration deal, in addition to shares assured in his earlier deal, would leave Musk with 25% ownership of Tesla's shares. As of early November, Tesla shares were valued approaching its yearly maximum, at roughly $450 per share.

Lofty Goals

Throughout a ten years, Musk will be tasked to manufacture 20 million electric vehicles to customers, distribute 10 million live FSD memberships, develop and sell 1 million advanced androids, and introduce 1 million robotaxis in revenue-generating use.

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

In November, Musk's fortune was estimated at $460 billion, the highest in the planet, as reported by financial data.

Reinstating a Rescinded Deal

Investors are additionally considering a plan that would reward Musk after his earlier remuneration deal was invalidated by a legal authority in Delaware. The pay plan, estimated to be $56 billion, was challenged by a sole shareholder who prevailed in court. The Delaware court of chancery rejected Musk's remuneration deal twice. If shareholders approve the arrangement in the shareholder meeting, Musk is likely to be awarded the huge sum regardless of if Tesla and Musk overturn the ruling of the legal matter.

After Musk's previous compensation plan was originally overturned, he transferred Tesla's corporate home to Texas from Delaware. He did the same with his aerospace company and other business entities. In the previous year, per Texas statutes, shareholders for a second time approved the compensation plan.

But Delaware's so-called "equity court" again rejected one of the largest CEO pay deals in contemporary business. In the wake of that adverse judgment, Musk posted on his accounts to express dissatisfaction with the state and its "prominent judicial figure", perhaps fueling a series of corporate exits that Delaware lawmakers have tried to stop with regulatory measures.

In considering whether Musk had improper sway in being granted that earlier remuneration deal, a respected legal scholar commented that the court noted that other "superstar CEOs" like Meta's Mark Zuckerberg and the Amazon founder were not awarded this sort of performance-linked deals.