🔗 Share this article

Tesla shareholders convened on Thursday to decide on a enormous remuneration plan for the company's leader estimated at close to $1 trillion. Should it pass, this deal would showcase investor confidence that the entrepreneur can lead the automaker into an period defined by AI technology and advanced machinery. Should it fail, Tesla could potentially face the loss of a pioneering CEO who previously established the brand interchangeable with EVs.

Record-Breaking Goals and Company Valuation

If the CEO meets the lofty objectives specified in the remuneration deal revealed at Tesla's annual meeting, he could be crowned the pioneering person with a trillion-dollar net worth. To reach this goal, he must steer Tesla to a astronomical $8.5 trillion in company worth, which is 800% of its existing market cap. Additionally, he will be obligated to roll out millions self-driving cars and humanoid robots, while sustaining the company's bottom line in the hundreds of billions of dollars over the next decade.

Payment Breakdown

The main goals of the remuneration structure, divided into a dozen phases, chart a path for Tesla to achieve its enormous valuation. If successful, Musk would be able to cash in an further 12% of the firm's equity. To qualify, he must stay committed with the company for at least 7.5 years. Additionally, he must contribute to forming a corporate transition roadmap for the enterprise he has managed for over 20 years. The share grants provided by the latest pay package, alongside shares promised in his earlier deal, would grant Musk with a quarter stake of Tesla's equity. In early November, Tesla shares were valued close to its annual peak, at roughly $450 each share.

Ambitious Targets

Over the course of a ten years, Musk will be tasked to manufacture 20 million EVs to buyers, distribute 10 million live FSD memberships, produce and launch 1 million humanoid robots, and introduce 1 million robotaxis in revenue-generating use.

Musk will also be obligated to elevate the company to $400 billion in real profits for four straight quarters. Tesla's real profits for the Q3 2025 were $4.2 billion, down 9% from the same period last year.

By November, Musk's net worth was estimated at $460 billion, the leading in the world, based on wealth indexes.

Reinstating a Invalidated Deal

Investors are furthermore considering a arrangement that would remunerate Musk after his earlier remuneration deal was overturned by a court in Delaware. The compensation package, estimated to be $56 billion, was challenged by a single stockholder who won his case. The Delaware court of chancery rejected Musk's pay package twice. Should investors pass the plan in Thursday's vote, Musk is set to be awarded the huge sum regardless of if Tesla and Musk overturn the ruling of the case.

Following Musk's 2018 pay package was initially invalidated, he transferred Tesla's legal headquarters to Texas from Delaware. He did the same with the rocket firm and other business entities. In last year, per Texas statutes, shareholders again approved the compensation plan.

But Delaware's known as "court of equity" once again rejected one of the biggest CEO compensation packages in modern history. In the wake of that negative decision, Musk posted on his accounts to voice displeasure with the region and its "prominent judicial figure", arguably igniting a series of corporate exits that Delaware legislators have attempted to staunch with new laws.

In evaluating whether Musk had improper sway in being awarded that 2018 pay package, a prominent legal scholar remarked that the judge recognized that other "high-profile executives" like the Meta chief and the e-commerce pioneer were not awarded this kind of goal-oriented agreements.