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Tesla shareholders assembled this Thursday to determine on a substantial remuneration plan for CEO Elon Musk worth approximately around $1 trillion. Should it pass, this plan would showcase investor confidence that the billionaire can guide the car company into an age dominated by machine learning and robotics. If denied, Tesla could risk the exit of a pioneering CEO who once made the brand synonymous with zero-emission cars.

Historic Milestones and Market Capitalization

Should Musk achieve the lofty milestones outlined in the remuneration deal presented at Tesla's corporate assembly, he could be crowned the world's first person with a trillion-dollar net worth. To accomplish this, he must guide Tesla to a monumental $8.5 trillion in market value, which is an eightfold increase its current valuation. Moreover, he will be tasked to launch numerous driverless automobiles and humanoid robots, while sustaining the company's bottom line in the massive revenue figures throughout the coming ten years.

Payment Breakdown

The key aims of the compensation plan, split into a dozen phases, delineate a roadmap for Tesla to attain its colossal valuation. Upon achievement, Musk would be eligible to benefit from an extra 12% of the firm's equity. For this to occur, he must remain vested with the firm for at least 7.5 years. He will also help develop a future leadership strategy for the business he has headed for more than 20 years. The stock options provided by the new compensation plan, combined with shares promised in his previous compensation plan, would grant Musk with 25 percent equity of Tesla's shares. As of early November, Tesla shares were valued near its 52-week high, at around $450 each share.

Lofty Goals

During a ten-year period, Musk will be obligated to manufacture 20 million electric vehicles to buyers, distribute 10 million live FSD memberships, create and distribute 1 million advanced androids, and introduce 1 million robotaxis in paid operations.

Musk will additionally be required to bring the firm to $400 billion in actual earnings for four consecutive quarters. Tesla's tangible revenue for the third quarter of 2025 were $4.2 billion, 9 percent lower from the previous year.

As of November, Musk's fortune was valued at $460 billion, the top in the globe, based on market tracking.

Reinstating a Rescinded Package

Investors are additionally considering a plan that would remunerate Musk after his previous pay package was overturned by a judicial body in Delaware. The compensation package, estimated to be $56 billion, was challenged by a single stockholder who succeeded legally. The state court denied Musk's compensation plan twice. Upon stockholder approval the plan in the Thursday ballot, Musk is expected to be paid the huge sum irrespective of whether Tesla and Musk overturn the ruling of the lawsuit.

After Musk's 2018 pay package was first rescinded, he transferred Tesla's corporate home to Texas from Delaware. He followed suit with the rocket firm and other business entities. In last year, per Texas statutes, shareholders again voted to approve the pay package.

But Delaware's known as "equity court" for a second time ruled against one of the biggest CEO pay deals in modern history. In the wake of that unfavorable ruling, Musk used online platforms to show frustration with the jurisdiction and its "prominent judicial figure", perhaps fueling a number of company relocations that Delaware lawmakers have tried to stop with legislation.

In reviewing whether Musk had improper sway in being granted that 2018 pay package, a prominent legal scholar observed that the judge acknowledged that other "superstar CEOs" like Meta's Mark Zuckerberg and the e-commerce pioneer were not granted this kind of incentive-based contracts.