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Investors in the electric car maker assembled this Thursday to determine on a enormous remuneration plan for CEO Elon Musk valued at close to $1 trillion. Upon approval, this deal would demonstrate shareholder trust that the tech magnate can steer the vehicle manufacturer into an age defined by AI technology and robotics. If rejected, Tesla could confront the loss of a visionary leader who historically built the corporation equivalent with electric vehicles.

Record-Breaking Targets and Company Valuation

Upon reaching the formidable milestones detailed in the pay package introduced at Tesla's corporate assembly, he could be crowned the world's first person with a trillion-dollar net worth. To reach this goal, he must guide Tesla to a monumental $8.5 trillion in market capitalization, which is 800% of its existing market cap. Moreover, he will be tasked to roll out millions autonomous vehicles and bipedal machines, while upholding the company's bottom line in the massive revenue figures throughout the coming ten years.

Compensation Structure

The key aims of the pay package, organized into twelve stages, delineate a trajectory for Tesla to achieve its massive valuation. Upon achievement, Musk would be eligible to cash in an additional 12% of the company's stock. For this to occur, he must maintain involvement with the corporation for no less than 7.5 years. Additionally, he must assist in creating a corporate transition roadmap for the enterprise he has managed for in excess of 20 years. The share grants provided by the updated remuneration deal, alongside shares guaranteed in his earlier deal, would result in Musk with 25 percent equity of Tesla's equity. As of early November, Tesla equity was priced close to its annual peak, at approximately $450 each share.

Ambitious Targets

During a decade, Musk will be obligated to produce 20 million electric vehicles to buyers, distribute 10 million active full self-driving subscriptions, develop and sell 1 million humanoid robots, and deploy 1 million autonomous taxis in commercial service.

Musk will also be required to elevate the company to $400 billion in actual earnings for a full year. Tesla's tangible revenue for the third quarter of 2025 were $4.2 billion, 9 percent lower from the same period last year.

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

Reinstating a Revoked Deal

Investors are furthermore considering a plan that would compensate Musk after his previous pay package was voided by a legal authority in Delaware. The remuneration deal, worth an estimated $56 billion, was challenged by a single stockholder who succeeded legally. The state court denied Musk's remuneration deal on two occasions. If shareholders approve the proposal in the Thursday ballot, Musk is likely to be granted the substantial payout whether or not Tesla and Musk overturn the ruling of the legal matter.

Following Musk's 2018 pay package was first rescinded, he relocated Tesla's legal headquarters out of Delaware and into Texas. He repeated the action with his aerospace company and other companies' headquarters. In 2024, under Texas law, shareholders again approved the pay package.

But Delaware's often referred to as "equity court" for a second time denied one of the biggest CEO compensation packages in modern history. In the wake of that unfavorable ruling, Musk took to social media to express dissatisfaction with the jurisdiction and its "influential presiding justice", possibly sparking a number of company relocations that Delaware lawmakers have tried to stop with legislation.

In reviewing whether Musk had excessive control in being awarded that 2018 pay package, a prominent legal scholar remarked that the judicial authority acknowledged that other "celebrity leaders" like Facebook's founder and the e-commerce pioneer were not awarded this type of performance-linked deals.