🔗 Share this article

Tesla shareholders gathered on Thursday to determine on a massive remuneration plan for CEO Elon Musk valued at close to $1 trillion. Upon approval, this plan would showcase market faith that the tech magnate can steer the automaker into an age shaped by machine learning and automation. If rejected, Tesla could potentially face the departure of a key figure who previously established the corporation synonymous with electric vehicles.

Historic Milestones and Market Capitalization

If the CEO meets the ambitious targets specified in the compensation plan presented at Tesla's shareholder gathering, he could be crowned the pioneering trillionaire. To reach this goal, he must steer Tesla to a staggering $8.5 trillion in market capitalization, which is 800% of its current valuation. Additionally, he will be obligated to roll out numerous autonomous vehicles and advanced androids, while maintaining the financial performance in the massive revenue figures throughout the coming ten years.

Reward System

The key aims of the compensation plan, organized into a dozen phases, chart a roadmap for Tesla to reach its colossal valuation. Upon achievement, Musk would be able to realize gains on an additional 12% of the corporation's shares. For this to occur, he must stay committed with the firm for no less than 7.5 years. He will also contribute to forming a corporate transition roadmap for the enterprise he has managed for over 20 years. The equity incentives offered by the new compensation plan, alongside shares promised in his earlier deal, would leave Musk with 25% ownership of Tesla's equity. By the start of November, Tesla equity was priced near its annual peak, at roughly $450 per stock.

Lofty Goals

Over the course of a ten-year period, Musk will be required to produce 20 million zero-emission cars to buyers, sell 10 million operational autonomous driving plans, produce and launch 1 million bipedal machines, and launch 1 million robotaxis in commercial service.

Musk will furthermore be required to elevate the company to $400 billion in tangible revenue for four straight quarters. Tesla's real profits for the July-September 2025 were $4.2 billion, down 9% from the same period last year.

As of November, Musk's personal wealth was estimated at $460 billion, the highest in the planet, as reported by market tracking.

Reinstating a Revoked Plan

Shareholders are also reviewing a plan that would remunerate Musk after his earlier remuneration deal was invalidated by a court in Delaware. The compensation package, worth an estimated $56 billion, was disputed by a sole shareholder who succeeded legally. The state court dismissed Musk's pay package on multiple instances. If shareholders approve the proposal in the Thursday ballot, Musk is likely to be paid the huge sum whether or not Tesla and Musk overturn the ruling of the legal matter.

Subsequent to Musk's earlier remuneration deal was originally overturned, he transferred Tesla's legal headquarters out of Delaware and into Texas. He repeated the action with his aerospace company and other companies' headquarters. In the previous year, under Texas law, shareholders again voted to approve the remuneration deal.

But Delaware's known as "equity court" again ruled against one of the most substantial CEO payouts in modern history. Following that adverse judgment, Musk used online platforms to show frustration with the state and its "activist chief judge", perhaps sparking a wave of business departures that Delaware officials have tried to stop with regulatory measures.

In reviewing whether Musk had improper sway in being granted that 2018 pay package, a respected legal scholar observed that the court noted that other "celebrity leaders" like Meta's Mark Zuckerberg and Amazon's Jeff Bezos were not granted this sort of incentive-based contracts.