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Tesla shareholders convened this Thursday to decide on a enormous remuneration plan for CEO Elon Musk estimated at close to $1 trillion. If approved, this plan would showcase investor confidence that the tech magnate can guide the automaker into an era defined by machine learning and robotics. Should it fail, Tesla could risk the departure of a pioneering CEO who historically built the corporation synonymous with EVs.

Historic Targets and Market Capitalization

If the CEO meets the ambitious objectives outlined in the remuneration deal presented at Tesla's corporate assembly, he could become the world's first trillionaire. To accomplish this, he must guide Tesla to a astronomical $8.5 trillion in market value, which is eight times its existing market cap. Additionally, he will be tasked to roll out numerous driverless automobiles and bipedal machines, while sustaining the company's bottom line in the hundreds of billions of dollars in the upcoming decade.

Reward System

The main goals of the compensation plan, split into a dozen phases, outline a path for Tesla to attain its massive valuation. If successful, Musk would be able to benefit from an extra 12% of the company's stock. To be eligible, he must maintain involvement with the corporation for no less than 7.5 years. He will also help develop a corporate transition roadmap for the business he has led for in excess of 20 years. The share grants offered by the new compensation plan, in addition to shares guaranteed in his 2018 package, would grant Musk with a quarter stake of Tesla's shares. As of early November, Tesla shares were valued close to its yearly maximum, at around $450 per stock.

Lofty Goals

Over the course of a ten-year period, Musk will be tasked to deliver 20 million electric vehicles to buyers, distribute 10 million live FSD memberships, develop and sell 1 million bipedal machines, and deploy 1 million robotaxis in paid operations.

Musk will also be tasked to elevate the corporation to $400 billion in real profits for a full year. Tesla's actual earnings for the Q3 2025 were $4.2 billion, down 9% from the previous year.

As of November, Musk's personal wealth was pegged at $460 billion, the leading in the globe, based on market tracking.

Reinstating a Invalidated Plan

Shareholders are also reviewing a arrangement that would remunerate Musk after his 2018 compensation plan was invalidated by a legal authority in Delaware. The remuneration deal, estimated to be $56 billion, was contested by a sole shareholder who won his case. The state court denied Musk's remuneration deal twice. Should investors pass the arrangement in the shareholder meeting, Musk is expected to be awarded the massive amount whether or not Tesla and Musk overturn the ruling of the case.

Subsequent to Musk's earlier remuneration deal was originally overturned, he transferred Tesla's legal headquarters to Texas from Delaware. He repeated the action with the rocket firm and other companies' headquarters. In last year, under Texas law, shareholders again voted to approve the remuneration deal.

But Delaware's known as "court of equity" once again denied one of the biggest CEO compensation packages in contemporary business. Following that adverse judgment, Musk used online platforms to voice displeasure with the jurisdiction and its "activist chief judge", possibly igniting a series of corporate exits that Delaware lawmakers have sought to curb with new laws.

In considering whether Musk had excessive control in being granted that earlier remuneration deal, a respected legal scholar remarked that the judge acknowledged that other "celebrity leaders" like Meta's Mark Zuckerberg and the e-commerce pioneer were not awarded this sort of goal-oriented agreements.