🔗 Share this article

Investors in the electric car maker gathered this Thursday to determine on a massive compensation package for CEO Elon Musk worth approximately close to $1 trillion. Upon approval, this deal would showcase investor confidence that the tech magnate can steer the vehicle manufacturer into an age dominated by machine learning and advanced machinery. If rejected, Tesla could potentially face the loss of a key figure who previously established the company name equivalent with EVs.

Historic Milestones and Company Valuation

Should Musk achieve the formidable objectives outlined in the remuneration deal presented at Tesla's corporate assembly, he could become the first-ever person with a trillion-dollar net worth. For this to happen, he must lead Tesla to a staggering $8.5 trillion in market capitalization, which is an eightfold increase its present worth. Moreover, he will be tasked to launch countless autonomous vehicles and humanoid robots, while maintaining the financial performance in the massive revenue figures throughout the coming ten years.

Reward System

The primary objectives of the pay package, split into 12 tranches, chart a path for Tesla to achieve its massive worth. Should targets be met, Musk would be able to benefit from an extra 12% of the firm's equity. For this to occur, he must maintain involvement with the corporation for a minimum of 7.5 years. Additionally, he must contribute to forming a future leadership strategy for the organization he has headed for more than 20 years. The share grants provided by the latest pay package, in addition to shares promised in his previous compensation plan, would grant Musk with a quarter stake of Tesla's shares. As of early November, Tesla equity was priced close to its 52-week high, at roughly $450 per share.

Formidable Objectives

During a ten-year period, Musk will be required to manufacture 20 million EVs to consumers, distribute 10 million active full self-driving subscriptions, develop and sell 1 million advanced androids, and deploy 1 million self-driving cabs in commercial service.

Musk will furthermore be tasked to bring the company to $400 billion in tangible revenue for four straight quarters. Tesla's real profits for the Q3 2025 were $4.2 billion, a 9% decrease from the same period last year.

As of November, Musk's personal wealth was estimated at $460 billion, the top in the globe, as reported by financial data.

Reviving a Rescinded Plan

Shareholders are also considering a plan that would compensate Musk after his 2018 compensation plan was voided by a legal authority in Delaware. The remuneration deal, valued at around $56 billion, was contested by a individual investor who won his case. The Delaware court of chancery dismissed Musk's pay package on two occasions. Should investors pass the arrangement in Thursday's vote, Musk is set to be paid the substantial payout regardless of if Tesla and Musk succeed in appealing of the legal matter.

After Musk's 2018 pay package was originally overturned, he relocated Tesla's legal headquarters from Delaware to Texas. He did the same with SpaceX and other business entities. In last year, per Texas statutes, shareholders once again approved the pay package.

But Delaware's so-called "equity court" for a second time rejected one of the largest CEO payouts in contemporary business. In the wake of that negative decision, Musk took to social media to express dissatisfaction with the state and its "influential presiding justice", possibly sparking a number of company relocations that Delaware legislators have attempted to staunch with regulatory measures.

In considering whether Musk had improper sway in being given that earlier remuneration deal, a respected law professor remarked that the court noted that other "high-profile executives" like Meta's Mark Zuckerberg and Amazon's Jeff Bezos were not granted this sort of performance-linked deals.