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Investors in the electric car maker convened this Thursday to determine on a massive remuneration plan for CEO Elon Musk estimated at around $1 trillion. If approved, this plan would showcase market faith that the tech magnate can lead the vehicle manufacturer into an era shaped by AI technology and robotics. If denied, Tesla could risk the exit of a key figure who historically built the brand equivalent with zero-emission cars.

Record-Breaking Milestones and Company Valuation

Upon reaching the ambitious targets outlined in the pay package revealed at Tesla's annual meeting, he could become the pioneering person with a trillion-dollar net worth. To accomplish this, he must guide Tesla to a staggering $8.5 trillion in market capitalization, which is eight times its present worth. Additionally, he will be obligated to roll out numerous autonomous vehicles and advanced androids, while sustaining the corporate profits in the hundreds of billions throughout the coming ten years.

Payment Breakdown

The main goals of the pay package, organized into 12 tranches, chart a trajectory for Tesla to attain its enormous market capitalization. If successful, Musk would be able to benefit from an further 12% of the firm's equity. To qualify, he must maintain involvement with the firm for at least 7.5 years. He will also help develop a corporate transition roadmap for the enterprise he has led for over 20 years. The stock options provided by the new compensation plan, alongside shares guaranteed in his 2018 package, would leave Musk with 25% ownership of Tesla's stock. By the start of November, Tesla shares were valued close to its annual peak, at approximately $450 each share.

Ambitious Targets

Over the course of a ten years, Musk will be tasked to produce 20 million zero-emission cars to buyers, distribute 10 million live FSD memberships, develop and sell 1 million advanced androids, and launch 1 million autonomous taxis in revenue-generating use.

Musk will furthermore be required to increase the company to $400 billion in actual earnings for four straight quarters. Tesla's actual earnings for the Q3 2025 were $4.2 billion, down 9% from the previous year.

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

Restoring a Revoked Package

Stockholders are also reviewing a proposal that would compensate Musk after his previous pay package was overturned by a court in Delaware. The compensation package, valued at around $56 billion, was challenged by a sole shareholder who won his case. The Delaware court of chancery rejected Musk's compensation plan on multiple instances. Should investors pass the proposal in Thursday's vote, Musk is likely to be granted the huge sum irrespective of whether Tesla and Musk succeed in appealing of the case.

Subsequent to Musk's earlier remuneration deal was initially invalidated, he transferred Tesla's legal headquarters to Texas from Delaware. He followed suit with the rocket firm and additional corporate bases. In last year, under Texas law, shareholders once again voted to approve the remuneration deal.

But Delaware's known as "equity court" for a second time rejected one of the most substantial CEO payouts in recent times. After that unfavorable ruling, Musk used online platforms to voice displeasure with the jurisdiction and its "activist chief judge", arguably sparking a number of company relocations that Delaware legislators have tried to stop with legislation.

In evaluating whether Musk had excessive control in being awarded that previous compensation plan, a respected law professor commented that the judicial authority noted that other "celebrity leaders" like Meta's Mark Zuckerberg and the e-commerce pioneer were not awarded this sort of performance-linked deals.