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Investors in the electric car maker assembled this Thursday to vote on a substantial compensation package for CEO Elon Musk valued at close to $1 trillion. Should it pass, this deal would showcase market faith that the entrepreneur can steer the car company into an period defined by AI technology and automation. Should it fail, Tesla could confront the loss of a visionary leader who once made the company name interchangeable with zero-emission cars.

Historic Targets and Company Valuation

If the CEO meets the formidable targets specified in the pay package revealed at Tesla's corporate assembly, he could become the first-ever person with a trillion-dollar net worth. For this to happen, he must steer Tesla to a monumental $8.5 trillion in company worth, which is an eightfold increase its present worth. Furthermore, he will be obligated to roll out numerous self-driving cars and advanced androids, while upholding the company's bottom line in the massive revenue figures over the next decade.

Payment Breakdown

The primary objectives of the compensation plan, divided into a dozen phases, delineate a roadmap for Tesla to reach its colossal market capitalization. If successful, Musk would be in a position to benefit from an extra 12% of the company's stock. For this to occur, he must maintain involvement with the corporation for a minimum of 7.5 years. He will also assist in creating a corporate transition roadmap for the enterprise he has led for in excess of 20 years. The share grants awarded by the updated remuneration deal, alongside shares assured in his 2018 package, would result in Musk with 25% ownership of Tesla's equity. As of early November, Tesla stock was trading approaching its 52-week high, at approximately $450 each share.

Ambitious Targets

Throughout a ten-year period, Musk will be required to deliver 20 million EVs to customers, market 10 million live FSD memberships, create and distribute 1 million humanoid robots, and launch 1 million autonomous taxis in commercial service.

Musk will also be obligated to elevate the corporation to $400 billion in actual earnings for four straight quarters. Tesla's real profits for the third quarter of 2025 were $4.2 billion, a 9% decrease from the previous year.

In November, Musk's net worth was valued at $460 billion, the highest in the world, based on market tracking.

Reinstating a Rescinded Package

Shareholders are furthermore evaluating a plan that would remunerate Musk after his 2018 compensation plan was invalidated by a court in Delaware. The compensation package, worth an estimated $56 billion, was disputed by a sole shareholder who prevailed in court. The Delaware court of chancery dismissed Musk's pay package twice. Should investors pass the proposal in the Thursday ballot, Musk is expected to be awarded the substantial payout regardless of if Tesla and Musk win an appeal of the case.

Following Musk's previous compensation plan was originally overturned, he moved Tesla's corporate home to Texas from Delaware. He repeated the action with SpaceX and other business entities. In 2024, under Texas law, shareholders once again passed the remuneration deal.

But Delaware's so-called "judicial body" again denied one of the largest CEO compensation packages in contemporary business. After that negative decision, Musk posted on his accounts to express dissatisfaction with the jurisdiction and its "activist chief judge", arguably sparking a series of corporate exits that Delaware lawmakers have tried to stop with legislation.

In considering whether Musk had undue influence in being awarded that 2018 pay package, a prominent legal scholar remarked that the judge noted that other "celebrity leaders" like Meta's Mark Zuckerberg and the e-commerce pioneer were not given this sort of incentive-based contracts.