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Tesla shareholders assembled this Thursday to determine on a enormous remuneration plan for Chief Executive Elon Musk estimated at around $1 trillion. Upon approval, this plan would demonstrate investor confidence that the entrepreneur can lead the vehicle manufacturer into an era dominated by artificial intelligence and advanced machinery. Should it fail, Tesla could risk the departure of a pioneering CEO who once made the company name synonymous with EVs.

Record-Breaking Goals and Company Valuation

If the CEO meets the ambitious objectives detailed in the compensation plan revealed at Tesla's corporate assembly, he could be crowned the pioneering trillionaire. To reach this goal, he must steer Tesla to a astronomical $8.5 trillion in market capitalization, which is eight times its current valuation. Moreover, he will be obligated to roll out numerous autonomous vehicles and bipedal machines, while maintaining the corporate profits in the massive revenue figures throughout the coming ten years.

Reward System

The main goals of the compensation plan, organized into twelve stages, delineate a path for Tesla to attain its colossal valuation. Should targets be met, Musk would be eligible to realize gains on an additional 12% of the company's stock. To be eligible, he must maintain involvement with the corporation for no less than 7.5 years. He will also assist in creating a corporate transition roadmap for the enterprise he has led for over 20 years. The equity incentives awarded by the latest pay package, alongside shares guaranteed in his previous compensation plan, would result in Musk with 25 percent equity of Tesla's equity. As of early November, Tesla shares were valued near its annual peak, at around $450 per stock.

Ambitious Targets

Throughout a decade, Musk will be obligated to manufacture 20 million electric vehicles to buyers, distribute 10 million live FSD memberships, produce and launch 1 million advanced androids, and launch 1 million robotaxis in commercial service.

Musk will also be tasked to elevate the company to $400 billion in tangible revenue for four consecutive quarters. Tesla's actual earnings for the third quarter of 2025 were $4.2 billion, 9 percent lower from the year before.

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

Reviving a Rescinded Package

Shareholders are also reviewing a proposal that would compensate Musk after his 2018 compensation plan was voided by a legal authority in Delaware. The remuneration deal, worth an estimated $56 billion, was challenged by a single stockholder who won his case. The Delaware court of chancery dismissed Musk's pay package on multiple instances. Upon stockholder approval the proposal in Thursday's vote, Musk is likely to be paid the massive amount regardless of if Tesla and Musk overturn the ruling of the lawsuit.

Subsequent to Musk's 2018 pay package was initially invalidated, he transferred Tesla's legal headquarters out of Delaware and into Texas. He repeated the action with the rocket firm and additional corporate bases. In 2024, per Texas statutes, shareholders again voted to approve the pay package.

But Delaware's so-called "court of equity" again rejected one of the biggest CEO pay deals in modern history. Following that unfavorable ruling, Musk posted on his accounts to show frustration with the jurisdiction and its "influential presiding justice", perhaps fueling a series of corporate exits that Delaware lawmakers have tried to stop with legislation.

In considering whether Musk had undue influence in being given that previous compensation plan, a prominent legal scholar commented that the judge recognized that other "celebrity leaders" like the Meta chief and Amazon's Jeff Bezos were not granted this type of goal-oriented agreements.