🔗 Share this article

Investors in the electric car maker convened this Thursday to determine on a massive remuneration plan for CEO Elon Musk worth approximately around $1 trillion. If approved, this plan would demonstrate investor confidence that the billionaire can lead the car company into an age dominated by AI technology and automation. Should it fail, Tesla could potentially face the exit of a visionary leader who historically built the company name interchangeable with electric vehicles.

Record-Breaking Targets and Market Capitalization

Upon reaching the lofty objectives detailed in the compensation plan revealed at Tesla's annual meeting, he could become the first-ever trillionaire. To accomplish this, he must steer Tesla to a staggering $8.5 trillion in company worth, which is 800% of its present worth. Additionally, he will be obligated to deploy numerous self-driving cars and humanoid robots, while upholding the company's bottom line in the hundreds of billions of dollars in the upcoming decade.

Payment Breakdown

The key aims of the pay package, split into twelve stages, chart a roadmap for Tesla to reach its colossal valuation. Should targets be met, Musk would be eligible to benefit from an further 12% of the company's stock. To qualify, he must stay committed with the firm for a minimum of 7.5 years. Additionally, he must help develop a future leadership strategy for the organization he has managed for more than 20 years. The share grants provided by the new compensation plan, in addition to shares assured in his 2018 package, would result in Musk with a quarter stake of Tesla's shares. By the start of November, Tesla shares were valued close to its annual peak, at roughly $450 per share.

Ambitious Targets

During a decade, Musk will be tasked to deliver 20 million electric vehicles to consumers, market 10 million live FSD memberships, produce and launch 1 million advanced androids, and launch 1 million autonomous taxis in commercial service.

Musk will furthermore be tasked to elevate the firm to $400 billion in real profits for four straight quarters. Tesla's actual earnings for the third quarter of 2025 were $4.2 billion, down 9% from the same period last year.

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

Reviving a Revoked Plan

Stockholders are also evaluating a plan that would remunerate Musk after his 2018 compensation plan was invalidated by a court in Delaware. The remuneration deal, estimated to be $56 billion, was contested by a sole shareholder who prevailed in court. The Delaware court of chancery dismissed Musk's remuneration deal on multiple instances. If shareholders approve the proposal in Thursday's vote, Musk is set to be paid the massive amount regardless of if Tesla and Musk win an appeal of the legal matter.

After Musk's 2018 pay package was first rescinded, he transferred Tesla's legal headquarters from Delaware to Texas. He followed suit 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 often referred to as "equity court" again denied one of the most substantial CEO payouts in contemporary business. Following that adverse judgment, Musk used online platforms to voice displeasure with the jurisdiction and its "activist chief judge", arguably fueling a series of corporate exits that Delaware legislators have tried to stop with new laws.

In reviewing whether Musk had improper sway in being granted that previous compensation plan, 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 granted this kind of goal-oriented agreements.