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Investors in the electric car maker convened on Thursday to vote on a massive remuneration plan for CEO Elon Musk estimated at close to $1 trillion. Upon approval, this plan would signal market faith that the entrepreneur can steer the vehicle manufacturer into an era dominated by AI technology and automation. If denied, Tesla could risk the departure of a key figure who once made the brand interchangeable with EVs.

Record-Breaking Milestones and Company Valuation

If the CEO meets the ambitious targets outlined in the compensation plan presented at Tesla's shareholder gathering, he could become the first-ever person with a trillion-dollar net worth. To reach this goal, he must guide Tesla to a monumental $8.5 trillion in company worth, which is 800% of its present worth. Additionally, he will be required to launch numerous driverless automobiles and bipedal machines, while sustaining the corporate profits in the hundreds of billions over the next decade.

Reward System

The primary objectives of the pay package, organized into twelve stages, chart a path for Tesla to reach its enormous market capitalization. If successful, Musk would be in a position to realize gains on an further 12% of the company's stock. To be eligible, he must maintain involvement with the firm for at least 7.5 years. Additionally, he must help develop a long-term succession plan for the organization he has headed for over 20 years. The share grants offered by the latest pay package, in addition to shares promised in his earlier deal, would grant Musk with a quarter stake of Tesla's equity. By the start of November, Tesla stock was trading near its annual peak, at roughly $450 per share.

Ambitious Targets

During a decade, Musk will be obligated to manufacture 20 million electric vehicles to consumers, sell 10 million active full self-driving subscriptions, produce and launch 1 million advanced androids, and launch 1 million robotaxis in commercial service.

Musk will additionally be tasked to elevate the firm to $400 billion in tangible revenue for four straight quarters. Tesla's real profits for the third quarter of 2025 were $4.2 billion, a 9% decrease from the same period last year.

By November, Musk's net worth was valued at $460 billion, the top in the world, based on financial data.

Reviving a Rescinded Deal

Shareholders are also considering a plan that would remunerate Musk after his 2018 compensation plan was voided by a court in Delaware. The compensation package, worth an estimated $56 billion, was disputed by a individual investor who won his case. The state court rejected Musk's remuneration deal on two occasions. Upon stockholder approval the plan in the Thursday ballot, Musk is likely to be granted the huge sum whether or not Tesla and Musk succeed in appealing of the legal matter.

Subsequent to Musk's previous compensation plan was first rescinded, he relocated Tesla's legal headquarters out of Delaware and into Texas. He did the same with SpaceX and other companies' headquarters. In the previous year, per Texas statutes, shareholders again voted to approve the compensation plan.

But Delaware's known as "court of equity" again rejected one of the largest CEO compensation packages in contemporary business. In the wake of that unfavorable ruling, Musk used online platforms to show frustration with the state and its "activist chief judge", perhaps sparking a series of corporate exits that Delaware lawmakers have sought to curb with new laws.

In evaluating whether Musk had undue influence in being granted that previous compensation plan, a prominent legal scholar observed that the judge recognized that other "celebrity leaders" like the Meta chief and the e-commerce pioneer were not given this sort of goal-oriented agreements.