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Investors in the electric car maker convened this Thursday to decide on a substantial pay deal for the company's leader worth approximately close to $1 trillion. Upon approval, this package would demonstrate market faith that the tech magnate can guide the automaker into an era shaped by machine learning and automation. If denied, Tesla could risk the loss of a pioneering CEO who once made the brand interchangeable with EVs.

Record-Breaking Goals and Market Capitalization

Upon reaching the formidable objectives outlined in the remuneration deal introduced at Tesla's annual meeting, he could be crowned the pioneering person with a trillion-dollar net worth. To accomplish this, he must steer Tesla to a astronomical $8.5 trillion in market capitalization, which is eight times its existing market cap. Moreover, he will be required to roll out numerous driverless automobiles and advanced androids, while upholding the corporate profits in the massive revenue figures in the upcoming decade.

Reward System

The main goals of the pay package, organized into twelve stages, outline a trajectory for Tesla to achieve its massive market capitalization. If successful, Musk would be in a position to benefit from an further 12% of the firm's equity. For this to occur, he must stay committed with the firm for a minimum of 7.5 years. Additionally, he must help develop a long-term succession plan for the organization he has led for over 20 years. The equity incentives awarded by the new compensation plan, in addition to shares promised in his earlier deal, would grant Musk with 25% ownership of Tesla's equity. By the start of November, Tesla equity was priced close to its annual peak, at around $450 per share.

Formidable Objectives

During a ten-year period, Musk will be required to deliver 20 million electric vehicles to buyers, distribute 10 million active full self-driving subscriptions, create and distribute 1 million humanoid robots, and introduce 1 million autonomous taxis in paid operations.

Musk will furthermore be required to increase the company to $400 billion in actual earnings for four straight quarters. Tesla's tangible revenue for the Q3 2025 were $4.2 billion, a 9% decrease from the same period last year.

As of November, Musk's fortune was estimated at $460 billion, the leading in the planet, based on market tracking.

Reviving a Rescinded Package

Stockholders are also reviewing a proposal that would compensate Musk after his earlier remuneration deal was overturned by a court in Delaware. The pay plan, valued at around $56 billion, was disputed by a sole shareholder who succeeded legally. The Delaware court of chancery rejected Musk's remuneration deal on two occasions. If shareholders approve the plan in Thursday's vote, Musk is set to be granted the huge sum whether or not Tesla and Musk succeed in appealing of the case.

Subsequent to Musk's 2018 pay package was first rescinded, he relocated Tesla's corporate home to Texas from Delaware. He followed suit with the rocket firm and additional corporate bases. In 2024, per Texas statutes, shareholders again approved the pay package.

But Delaware's often referred to as "judicial body" once again ruled against one of the most substantial CEO pay deals in recent times. After that adverse judgment, Musk posted on his accounts to voice displeasure with the state and its "activist chief judge", arguably fueling a series of corporate exits that Delaware officials have attempted to staunch with legislation.

In evaluating whether Musk had excessive control in being given that 2018 pay package, a respected law professor commented that the judicial authority acknowledged that other "superstar CEOs" like the Meta chief and Amazon's Jeff Bezos were not awarded this type of goal-oriented agreements.