🔗 Share this article

Investors in the electric car maker assembled on Thursday to vote on a substantial remuneration plan for CEO Elon Musk estimated at close to $1 trillion. If approved, this package would demonstrate investor confidence that the tech magnate can steer the car company into an era defined by AI technology and automation. If rejected, Tesla could confront the loss of a visionary leader who historically built the company name synonymous with zero-emission cars.

Historic Milestones and Market Capitalization

If the CEO meets the ambitious milestones specified in the pay package revealed at Tesla's annual meeting, he could be crowned the world's first trillionaire. To reach this goal, he must lead Tesla to a staggering $8.5 trillion in market capitalization, which is eight times its current valuation. Furthermore, he will be required to deploy countless autonomous vehicles and bipedal machines, while sustaining the financial performance in the hundreds of billions in the upcoming decade.

Payment Breakdown

The primary objectives of the compensation plan, divided into twelve stages, outline a roadmap for Tesla to attain its colossal worth. If successful, Musk would be in a position to benefit from an extra 12% of the corporation's shares. To be eligible, he must remain vested with the firm for no less than 7.5 years. Additionally, he must contribute to forming a future leadership strategy for the enterprise he has led for more than 20 years. The equity incentives awarded by the new compensation plan, combined with shares guaranteed in his 2018 package, would grant Musk with a quarter stake of Tesla's equity. In early November, Tesla shares were valued close to its yearly maximum, at around $450 each share.

Ambitious Targets

Throughout a ten years, Musk will be required to manufacture 20 million EVs to buyers, market 10 million active full self-driving subscriptions, develop and sell 1 million bipedal machines, and introduce 1 million robotaxis in paid operations.

Musk will furthermore be tasked to increase the corporation to $400 billion in real profits for a full year. Tesla's tangible revenue for the third quarter of 2025 were $4.2 billion, down 9% from the year before.

By November, Musk's personal wealth was pegged at $460 billion, the top in the world, according to market tracking.

Reviving a Rescinded Deal

Investors are furthermore considering a proposal that would reward Musk after his previous pay package was voided by a judicial body in Delaware. The pay plan, estimated to be $56 billion, was contested by a single stockholder who prevailed in court. The state court rejected Musk's compensation plan on multiple instances. If shareholders approve the plan in the Thursday ballot, Musk is likely to be paid the huge sum regardless of if Tesla and Musk win an appeal of the lawsuit.

Subsequent to Musk's earlier remuneration deal was originally overturned, he relocated Tesla's corporate home out of Delaware and into Texas. He followed suit with his aerospace company and additional corporate bases. In last year, per Texas statutes, shareholders for a second time passed the pay package.

But Delaware's known as "judicial body" again rejected one of the biggest CEO pay deals in recent times. After that adverse judgment, Musk posted on his accounts to voice displeasure with the region and its "prominent judicial figure", perhaps sparking a wave of business departures that Delaware legislators have sought to curb with new laws.

In evaluating whether Musk had improper sway in being awarded that 2018 pay package, a prominent legal scholar observed that the judicial authority acknowledged that other "high-profile executives" like Facebook's founder and the e-commerce pioneer were not given this sort of goal-oriented agreements.