🔗 Share this article

Investors in the electric car maker convened this Thursday to determine on a substantial remuneration plan for CEO Elon Musk worth approximately around $1 trillion. Should it pass, this plan would signal investor confidence that the tech magnate can guide the automaker into an age dominated by machine learning and advanced machinery. If rejected, Tesla could confront the exit of a key figure who previously established the brand equivalent with EVs.

Record-Breaking Milestones and Company Valuation

If the CEO meets the formidable objectives detailed in the remuneration deal presented at Tesla's shareholder gathering, he could emerge as the first-ever trillionaire. To accomplish this, he must guide Tesla to a staggering $8.5 trillion in market capitalization, which is 800% of its existing market cap. Furthermore, he will be tasked to deploy millions self-driving cars and bipedal machines, while sustaining the corporate profits in the hundreds of billions of dollars in the upcoming decade.

Reward System

The primary objectives of the pay package, split into a dozen phases, outline a roadmap for Tesla to reach its colossal valuation. If successful, Musk would be able to cash in an additional 12% of the corporation's shares. To qualify, he must stay committed with the corporation for at least 7.5 years. He will also contribute to forming a future leadership strategy for the enterprise he has headed for more than 20 years. The share grants awarded by the new compensation plan, combined with shares promised in his previous compensation plan, would result in Musk with a quarter stake of Tesla's shares. By the start of November, Tesla shares were valued approaching its yearly maximum, at approximately $450 per stock.

Formidable Objectives

Throughout a ten years, Musk will be obligated to deliver 20 million EVs to buyers, distribute 10 million active full self-driving subscriptions, produce and launch 1 million humanoid robots, and deploy 1 million self-driving cabs in revenue-generating use.

Musk will also be tasked to increase the corporation to $400 billion in tangible revenue for four straight quarters. Tesla's real profits for the third quarter of 2025 were $4.2 billion, 9 percent lower from the year before.

By November, Musk's net worth was pegged at $460 billion, the leading in the world, as reported by market tracking.

Reinstating a Invalidated Plan

Investors are additionally reviewing a proposal that would remunerate Musk after his previous pay package was invalidated by a court in Delaware. The pay plan, estimated to be $56 billion, was disputed by a sole shareholder who succeeded legally. The Delaware judicial system rejected Musk's remuneration deal on multiple instances. If shareholders approve the proposal in the Thursday ballot, Musk is expected to be awarded the massive amount regardless of if Tesla and Musk win an appeal of the case.

After Musk's 2018 pay package was first rescinded, he relocated Tesla's corporate home to Texas from Delaware. He repeated the action with the rocket firm and additional corporate bases. In 2024, per Texas statutes, shareholders for a second time voted to approve the pay package.

But Delaware's so-called "equity court" once again denied one of the most substantial CEO pay deals in modern history. In the wake of that negative decision, Musk took to social media to express dissatisfaction with the region and its "prominent judicial figure", arguably igniting a number of company relocations that Delaware legislators have attempted to staunch with regulatory measures.

In reviewing whether Musk had improper sway in being given that earlier remuneration deal, a noted law professor commented that the court acknowledged that other "superstar CEOs" like the Meta chief and the e-commerce pioneer were not awarded this kind of performance-linked deals.