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Investors in the electric car maker gathered this Thursday to vote on a massive compensation package for CEO Elon Musk valued at nearly $1 trillion. Should it pass, this deal would showcase investor confidence that the billionaire can steer the automaker into an era defined by AI technology and advanced machinery. If rejected, Tesla could confront the exit of a key figure who previously established the brand synonymous with zero-emission cars.

Record-Breaking Goals and Company Valuation

Upon reaching the formidable milestones detailed in the remuneration deal presented at Tesla's corporate assembly, he could become the world's first trillionaire. To accomplish this, he must steer Tesla to a monumental $8.5 trillion in company worth, which is eight times its existing market cap. Additionally, he will be tasked to roll out countless self-driving cars and advanced androids, while maintaining the company's bottom line in the hundreds of billions of dollars over the next decade.

Compensation Structure

The key aims of the pay package, divided into twelve stages, chart a trajectory for Tesla to attain its enormous market capitalization. Should targets be met, Musk would be in a position to benefit from an further 12% of the firm's equity. To be eligible, he must remain vested with the company for at least 7.5 years. Additionally, he must assist in creating a corporate transition roadmap for the business he has headed for more than 20 years. The stock options offered by the latest pay package, in addition to shares guaranteed in his earlier deal, would leave Musk with a quarter stake of Tesla's stock. In early November, Tesla shares were valued close to its annual peak, at around $450 per stock.

Ambitious Targets

Throughout a decade, Musk will be required to produce 20 million zero-emission cars to buyers, market 10 million live FSD memberships, create and distribute 1 million advanced androids, and introduce 1 million autonomous taxis in revenue-generating use.

Musk will also be obligated to elevate the company to $400 billion in actual earnings for four consecutive quarters. Tesla's real profits for the Q3 2025 were $4.2 billion, 9 percent lower from the year before.

By November, Musk's personal wealth was pegged at $460 billion, the top in the world, according to wealth indexes.

Reinstating a Rescinded Package

Shareholders are also considering a plan that would reward Musk after his earlier remuneration deal was overturned by a judicial body in Delaware. The compensation package, estimated to be $56 billion, was challenged by a individual investor who prevailed in court. The Delaware court of chancery denied Musk's pay package on multiple instances. If shareholders approve the plan in Thursday's vote, Musk is expected to be paid the huge sum irrespective of whether Tesla and Musk overturn the ruling of the case.

Subsequent to Musk's earlier remuneration deal was first rescinded, he moved Tesla's business registration from Delaware to Texas. He repeated the action with SpaceX and other companies' headquarters. In 2024, per Texas statutes, shareholders again approved the pay package.

But Delaware's known as "court of equity" for a second time denied one of the largest CEO compensation packages in contemporary business. After that unfavorable ruling, Musk took to social media to express dissatisfaction with the region and its "activist chief judge", possibly sparking a wave of business departures that Delaware lawmakers have sought to curb with legislation.

In evaluating whether Musk had excessive control in being awarded that previous compensation plan, a prominent law professor commented that the judge acknowledged that other "celebrity leaders" like Facebook's founder and Amazon's Jeff Bezos were not awarded this type of incentive-based contracts.