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Tesla shareholders assembled this Thursday to determine on a substantial remuneration plan for the company's leader valued at nearly $1 trillion. If approved, this plan would demonstrate shareholder trust that the tech magnate can guide the automaker into an era dominated by artificial intelligence and automation. If rejected, Tesla could confront the loss of a pioneering CEO who once made the company name synonymous with zero-emission cars.

Historic Targets and Market Capitalization

If the CEO meets the formidable objectives specified in the remuneration deal presented at Tesla's annual meeting, he could emerge as the first-ever person with a trillion-dollar net worth. To accomplish this, he must steer Tesla to a staggering $8.5 trillion in company worth, which is 800% of its present worth. Furthermore, he will be tasked to roll out numerous autonomous vehicles and bipedal machines, while sustaining the financial performance in the hundreds of billions throughout the coming ten years.

Compensation Structure

The primary objectives of the compensation plan, organized into twelve stages, chart a roadmap for Tesla to achieve its colossal worth. Upon achievement, Musk would be able to benefit from an further 12% of the corporation's shares. To be eligible, he must maintain involvement with the company for a minimum of 7.5 years. Furthermore, he is required to help develop a future leadership strategy for the business he has managed for over 20 years. The stock options offered by the latest pay package, combined with shares assured in his 2018 package, would grant Musk with 25 percent equity of Tesla's shares. By the start of November, Tesla stock was trading close to its 52-week high, at roughly $450 per stock.

Lofty Goals

During a decade, Musk will be tasked to produce 20 million EVs to customers, sell 10 million operational autonomous driving plans, create and distribute 1 million bipedal machines, and deploy 1 million self-driving cabs in paid operations.

Musk will also be tasked to elevate the company to $400 billion in actual earnings 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.

By November, Musk's net worth was estimated at $460 billion, the top in the world, as reported by financial data.

Reinstating a Rescinded Plan

Investors are also evaluating a proposal that would remunerate Musk after his earlier remuneration deal was invalidated by a legal authority in Delaware. The pay plan, valued at around $56 billion, was challenged by a individual investor who succeeded legally. The Delaware court of chancery denied Musk's pay package on multiple instances. If shareholders approve the proposal in the Thursday ballot, Musk is expected to be paid the huge sum whether or not Tesla and Musk overturn the ruling of the case.

Following Musk's earlier remuneration deal was first rescinded, he transferred Tesla's legal headquarters out of Delaware and into Texas. He followed suit with the rocket firm and other business entities. In 2024, according to Texas regulations, shareholders for a second time voted to approve the compensation plan.

But Delaware's so-called "equity court" again rejected one of the biggest CEO compensation packages in recent times. After that adverse judgment, Musk took to social media to show frustration with the region and its "activist chief judge", possibly fueling a wave of business departures that Delaware lawmakers have sought to curb with new laws.

In evaluating whether Musk had improper sway in being granted that previous compensation plan, a prominent academic expert commented that the judicial authority recognized that other "high-profile executives" like Meta's Mark Zuckerberg and the Amazon founder were not given this kind of goal-oriented agreements.