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Investors in the electric car maker gathered this Thursday to vote on a enormous compensation package for the company's leader valued at close to $1 trillion. Upon approval, this package would demonstrate shareholder trust that the tech magnate can lead the automaker into an age defined by artificial intelligence and automation. Should it fail, Tesla could potentially face the loss of a pioneering CEO who once made the brand synonymous with EVs.

Record-Breaking Milestones and Market Capitalization

Should Musk achieve the formidable objectives outlined in the compensation plan introduced at Tesla's annual meeting, he could emerge as the pioneering trillionaire. To reach this goal, he must lead Tesla to a staggering $8.5 trillion in market value, which is an eightfold increase its existing market cap. Additionally, he will be required to deploy millions self-driving cars and humanoid robots, while sustaining the financial performance in the hundreds of billions over the next decade.

Compensation Structure

The primary objectives of the pay package, divided into a dozen phases, chart a trajectory for Tesla to attain its massive market capitalization. Upon achievement, Musk would be in a position to benefit from an additional 12% of the company's stock. For this to occur, he must remain vested with the firm for no less than 7.5 years. Additionally, he must assist in creating a long-term succession plan for the enterprise he has headed for more than 20 years. The share grants offered by the new compensation plan, in addition to shares guaranteed in his earlier deal, would grant Musk with a quarter stake of Tesla's shares. In early November, Tesla stock was trading close to its yearly maximum, at approximately $450 each share.

Ambitious Targets

Over the course of a ten-year period, Musk will be tasked to manufacture 20 million EVs to consumers, distribute 10 million active full self-driving subscriptions, produce and launch 1 million humanoid robots, and launch 1 million autonomous taxis in commercial service.

Musk will additionally be obligated to bring the corporation to $400 billion in real profits 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.

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

Restoring a Rescinded Plan

Investors are additionally considering a proposal that would compensate Musk after his previous pay package was invalidated by a judicial body in Delaware. The compensation package, estimated to be $56 billion, was challenged by a sole shareholder who succeeded legally. The Delaware judicial system dismissed Musk's compensation plan twice. Upon stockholder approval the arrangement in the shareholder meeting, Musk is set to be granted the huge sum irrespective of whether Tesla and Musk succeed in appealing of the lawsuit.

Following Musk's 2018 pay package was first rescinded, he transferred Tesla's legal headquarters from Delaware to Texas. 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 often referred to as "judicial body" once again ruled against one of the largest CEO pay deals in modern history. Following that adverse judgment, Musk used online platforms to voice displeasure with the jurisdiction and its "influential presiding justice", possibly sparking a series of corporate exits that Delaware legislators have tried to stop with new laws.

In evaluating whether Musk had improper sway in being given that earlier remuneration deal, a noted legal scholar remarked that the judge noted that other "celebrity leaders" like the Meta chief and Amazon's Jeff Bezos were not awarded this sort of goal-oriented agreements.