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Investors in the electric car maker assembled this Thursday to decide on a massive remuneration plan for the company's leader estimated at nearly $1 trillion. If approved, this plan would signal shareholder trust that the billionaire can lead the car company into an era shaped by machine learning and robotics. If rejected, Tesla could potentially face the departure of a pioneering CEO who historically built the corporation synonymous with zero-emission cars.

Historic Goals and Market Capitalization

If the CEO meets the formidable milestones detailed in the remuneration deal presented at Tesla's shareholder gathering, he could become the first-ever person with a trillion-dollar net worth. To accomplish this, he must lead Tesla to a monumental $8.5 trillion in market value, which is 800% of its present worth. Additionally, he will be tasked to launch countless autonomous vehicles and humanoid robots, while upholding the financial performance in the massive revenue figures in the upcoming decade.

Payment Breakdown

The main goals of the compensation plan, split into 12 tranches, delineate a trajectory for Tesla to achieve its enormous valuation. Should targets be met, Musk would be able to benefit from an further 12% of the company's stock. To qualify, he must stay committed with the corporation for no less than 7.5 years. Additionally, he must assist in creating a long-term succession plan for the organization he has managed for over 20 years. The stock options awarded 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. In early November, Tesla equity was priced near its yearly maximum, at around $450 per share.

Ambitious Targets

Throughout a decade, Musk will be tasked to deliver 20 million EVs to buyers, sell 10 million active full self-driving subscriptions, produce and launch 1 million bipedal machines, and launch 1 million robotaxis in revenue-generating use.

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

In November, Musk's fortune was estimated at $460 billion, the highest in the world, according to financial data.

Restoring a Rescinded Plan

Stockholders are also reviewing 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 contested by a sole shareholder who succeeded legally. The Delaware court of chancery rejected Musk's compensation plan on two occasions. If shareholders approve the proposal in Thursday's vote, Musk is likely to be paid the huge sum irrespective of whether Tesla and Musk succeed in appealing of the case.

Following Musk's previous compensation plan was originally overturned, he relocated Tesla's legal headquarters from Delaware to Texas. He repeated the action with SpaceX and other business entities. In 2024, under Texas law, shareholders for a second time approved the remuneration deal.

But Delaware's so-called "court of equity" for a second time ruled against one of the biggest CEO payouts in contemporary business. After that negative decision, Musk used online platforms to voice displeasure with the jurisdiction and its "influential presiding justice", possibly sparking a wave of business departures that Delaware lawmakers have sought to curb with legislation.

In evaluating whether Musk had undue influence in being granted that previous compensation plan, a prominent academic expert commented that the judicial authority noted that other "high-profile executives" like Facebook's founder and the e-commerce pioneer were not granted this sort of performance-linked deals.