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Investors in the electric car maker convened on Thursday to decide on a massive compensation package for the company's leader estimated at close to $1 trillion. Upon approval, this package would demonstrate investor confidence that the entrepreneur can lead the car company into an age dominated by AI technology and robotics. If denied, Tesla could potentially face the loss of a key figure who historically built the company name synonymous with zero-emission cars.

Historic Goals and Market Capitalization

Upon reaching the ambitious objectives detailed in the remuneration deal revealed at Tesla's shareholder gathering, he could be crowned the pioneering trillionaire. To reach this goal, he must guide Tesla to a staggering $8.5 trillion in market value, which is 800% of its existing market cap. Moreover, he will be required to launch millions autonomous vehicles and advanced androids, while maintaining the company's bottom line in the hundreds of billions over the next decade.

Reward System

The main goals of the remuneration structure, organized into a dozen phases, delineate a roadmap for Tesla to achieve its massive market capitalization. Upon achievement, Musk would be able to cash in an extra 12% of the company's stock. To qualify, he must remain vested with the firm for at least 7.5 years. Additionally, he must contribute to forming a corporate transition roadmap for the organization he has led for in excess of 20 years. The stock options awarded by the new compensation plan, alongside shares promised in his previous compensation plan, would grant Musk with 25 percent equity of Tesla's shares. By the start of November, Tesla shares were valued close to its yearly maximum, at approximately $450 per share.

Lofty Goals

Over the course of a ten years, Musk will be obligated to deliver 20 million zero-emission cars to consumers, distribute 10 million active full self-driving subscriptions, develop and sell 1 million advanced androids, and launch 1 million autonomous taxis in paid operations.

Musk will additionally be required to increase the company to $400 billion in tangible revenue 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.

As of November, Musk's net worth was pegged at $460 billion, the top in the world, as reported by wealth indexes.

Reviving a Rescinded Deal

Investors are furthermore considering a proposal that would remunerate Musk after his 2018 compensation plan was overturned by a judicial body in Delaware. The compensation package, worth an estimated $56 billion, was challenged by a sole shareholder who won his case. The Delaware judicial system rejected Musk's compensation plan twice. Upon stockholder approval the arrangement in the shareholder meeting, Musk is set to be paid the substantial payout regardless of if Tesla and Musk succeed in appealing of the legal matter.

After Musk's 2018 pay package was originally overturned, he moved Tesla's corporate home from Delaware to Texas. He did the same with the rocket firm and additional corporate bases. In 2024, under Texas law, shareholders for a second time voted to approve the compensation plan.

But Delaware's so-called "judicial body" once again ruled against one of the biggest CEO payouts in recent times. After that adverse judgment, Musk took to social media to show frustration with the state and its "activist chief judge", perhaps igniting a series of corporate exits that Delaware officials have attempted to staunch with legislation.

In considering whether Musk had undue influence in being awarded that previous compensation plan, a noted law professor commented that the judge noted that other "high-profile executives" like Facebook's founder and the Amazon founder were not awarded this sort of incentive-based contracts.