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Tesla shareholders convened on Thursday to decide on a enormous compensation package for the company's leader valued at around $1 trillion. If approved, this plan would showcase market faith that the billionaire can lead the automaker into an period dominated by machine learning and automation. Should it fail, Tesla could risk the departure of a visionary leader who historically built the brand synonymous with electric vehicles.

Historic Milestones and Market Capitalization

Upon reaching the ambitious targets detailed in the remuneration deal revealed at Tesla's corporate assembly, he could become the first-ever trillionaire. For this to happen, he must steer Tesla to a staggering $8.5 trillion in market value, which is an eightfold increase its current valuation. Additionally, he will be tasked to launch millions autonomous vehicles and advanced androids, while maintaining the company's bottom line in the hundreds of billions in the upcoming decade.

Compensation Structure

The primary objectives of the remuneration structure, divided into twelve stages, delineate a trajectory for Tesla to achieve its colossal valuation. Should targets be met, Musk would be eligible to cash in an extra 12% of the company's stock. For this to occur, he must maintain involvement with the company for no less than 7.5 years. Furthermore, he is required to contribute to forming a future leadership strategy for the business he has headed for over 20 years. The share grants awarded by the updated remuneration deal, alongside shares guaranteed in his 2018 package, would result in Musk with 25% ownership of Tesla's stock. In early November, Tesla shares were valued near its annual peak, at around $450 per stock.

Lofty Goals

During a ten-year period, Musk will be obligated to manufacture 20 million electric vehicles to customers, distribute 10 million live FSD memberships, produce and launch 1 million bipedal machines, and launch 1 million autonomous taxis in commercial service.

Musk will furthermore be obligated to increase the company to $400 billion in real profits for four consecutive quarters. Tesla's tangible revenue for the Q3 2025 were $4.2 billion, down 9% from the year before.

In November, Musk's fortune was pegged at $460 billion, the highest in the globe, according to wealth indexes.

Restoring a Rescinded Package

Stockholders are also considering a plan that would compensate Musk after his earlier remuneration deal was overturned by a court in Delaware. The compensation package, estimated to be $56 billion, was challenged by a sole shareholder who prevailed in court. The Delaware judicial system dismissed Musk's compensation plan twice. Should investors pass the plan in the Thursday ballot, Musk is expected to be awarded the massive amount whether or not Tesla and Musk overturn the ruling of the lawsuit.

Subsequent to Musk's previous compensation plan was initially invalidated, he moved Tesla's business registration from Delaware to Texas. He followed suit with his aerospace company and other business entities. In 2024, per Texas statutes, shareholders again voted to approve the remuneration deal.

But Delaware's known as "court of equity" for a second time rejected one of the biggest CEO pay deals in contemporary business. In the wake of that unfavorable ruling, Musk used online platforms to show frustration with the region and its "activist chief judge", arguably fueling a wave of business departures that Delaware lawmakers have sought to curb with legislation.

In considering whether Musk had excessive control in being given that earlier remuneration deal, a respected academic expert remarked that the court noted that other "high-profile executives" like the Meta chief and the e-commerce pioneer were not given this sort of incentive-based contracts.