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Investors in the electric car maker assembled this Thursday to determine on a enormous remuneration plan for the company's leader valued at nearly $1 trillion. If approved, this deal would demonstrate market faith that the entrepreneur can lead the car company into an age shaped by machine learning and automation. If denied, Tesla could confront the loss of a visionary leader who previously established the brand interchangeable with zero-emission cars.

Historic Targets and Market Capitalization

Upon reaching the ambitious objectives specified in the compensation plan presented at Tesla's shareholder gathering, he could emerge as the pioneering person with a trillion-dollar net worth. For this to happen, he must steer Tesla to a monumental $8.5 trillion in market capitalization, which is 800% of its existing market cap. Furthermore, he will be tasked to roll out countless self-driving cars and bipedal machines, while upholding the corporate profits in the massive revenue figures in the upcoming decade.

Reward System

The primary objectives of the compensation plan, organized into twelve stages, delineate a roadmap for Tesla to achieve its colossal valuation. Upon achievement, Musk would be eligible to cash in an further 12% of the company's stock. For this to occur, he must remain vested with the company for a minimum of 7.5 years. He will also contribute to forming a long-term succession plan for the organization he has headed for more than 20 years. The stock options awarded by the new compensation plan, combined with shares assured in his previous compensation plan, would leave Musk with 25 percent equity of Tesla's shares. By the start of November, Tesla equity was priced approaching its yearly maximum, at around $450 each share.

Formidable Objectives

Over the course of a ten-year period, Musk will be obligated to deliver 20 million electric vehicles to consumers, distribute 10 million operational autonomous driving plans, produce and launch 1 million humanoid robots, and deploy 1 million autonomous taxis in commercial service.

Musk will furthermore be tasked to elevate the company 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 same period last year.

In November, Musk's personal wealth was estimated at $460 billion, the highest in the globe, based on market tracking.

Reviving a Revoked Plan

Shareholders are also evaluating a arrangement that would reward Musk after his earlier remuneration deal was overturned by a court in Delaware. The remuneration deal, valued at around $56 billion, was challenged by a sole shareholder who prevailed in court. The Delaware judicial system denied Musk's pay package twice. Should investors pass the arrangement in the shareholder meeting, Musk is expected to be granted the substantial payout regardless of if Tesla and Musk overturn the ruling of the lawsuit.

Subsequent to Musk's previous compensation plan was initially invalidated, he transferred Tesla's corporate home out of Delaware and into Texas. He did the same with the rocket firm and other companies' headquarters. In last year, according to Texas regulations, shareholders again voted to approve the pay package.

But Delaware's known as "equity court" again denied one of the biggest CEO payouts in recent times. In the wake of that negative decision, Musk posted on his accounts to voice displeasure with the jurisdiction and its "prominent judicial figure", arguably sparking a series of corporate exits that Delaware officials have attempted to staunch with new laws.

In considering whether Musk had undue influence in being granted that 2018 pay package, a respected law professor commented that the judge acknowledged that other "celebrity leaders" like Facebook's founder and the e-commerce pioneer were not awarded this kind of performance-linked deals.