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Investors in the electric car maker gathered on Thursday to vote on a enormous pay deal for Chief Executive Elon Musk valued at nearly $1 trillion. If approved, this deal would showcase investor confidence that the entrepreneur can lead the car company into an period shaped by AI technology and advanced machinery. Should it fail, Tesla could potentially face the exit of a key figure who once made the company name equivalent with EVs.

Historic Goals and Company Valuation

Upon reaching the formidable objectives detailed in the compensation plan introduced at Tesla's shareholder gathering, he could become the first-ever person with a trillion-dollar net worth. For this to happen, he must guide Tesla to a staggering $8.5 trillion in market value, which is an eightfold increase its existing market cap. Furthermore, he will be obligated to roll out numerous autonomous vehicles and humanoid robots, while sustaining the corporate profits in the hundreds of billions over the next decade.

Reward System

The key aims of the pay package, organized into 12 tranches, outline a roadmap for Tesla to attain its massive market capitalization. Upon achievement, Musk would be eligible to realize gains on an extra 12% of the company's stock. For this to occur, he must maintain involvement with the corporation for a minimum of 7.5 years. Furthermore, he is required to assist in creating a corporate transition roadmap for the business he has managed for over 20 years. The stock options offered by the latest pay package, in addition to shares assured in his previous compensation plan, would grant Musk with a quarter stake of Tesla's equity. In early November, Tesla equity was priced near its annual peak, at roughly $450 per share.

Ambitious Targets

Over the course of a ten years, Musk will be required to deliver 20 million EVs to customers, sell 10 million live FSD memberships, produce and launch 1 million bipedal machines, and introduce 1 million self-driving cabs in revenue-generating use.

Musk will furthermore be tasked to bring the corporation to $400 billion in tangible revenue for four consecutive quarters. Tesla's real profits for the third quarter of 2025 were $4.2 billion, down 9% from the same period last year.

In November, Musk's personal wealth was valued at $460 billion, the top in the globe, according to market tracking.

Reinstating a Rescinded Plan

Investors are also reviewing a plan that would compensate Musk after his earlier remuneration deal was overturned by a judicial body in Delaware. The remuneration deal, estimated to be $56 billion, was challenged by a individual investor who won his case. The Delaware judicial system rejected Musk's remuneration deal twice. Should investors pass the plan in the Thursday ballot, Musk is set to be paid the massive amount regardless of if Tesla and Musk win an appeal of the legal matter.

Following Musk's earlier remuneration deal was initially invalidated, he moved Tesla's legal headquarters to Texas from Delaware. He repeated the action with his aerospace company and other companies' headquarters. In the previous year, under Texas law, shareholders again approved the pay package.

But Delaware's so-called "court of equity" once again ruled against one of the largest CEO pay deals in modern history. Following that unfavorable ruling, Musk took to social media to show frustration with the region and its "activist chief judge", possibly sparking a wave of business departures that Delaware legislators have tried to stop with legislation.

In considering whether Musk had undue influence in being given that 2018 pay package, a prominent law professor commented that the court noted that other "celebrity leaders" like Facebook's founder and the e-commerce pioneer were not awarded this type of incentive-based contracts.