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Investors in the electric car maker assembled this Thursday to decide on a substantial remuneration plan for CEO Elon Musk valued at around $1 trillion. Should it pass, this deal would signal investor confidence that the entrepreneur can guide the vehicle manufacturer into an age dominated by artificial intelligence and robotics. If denied, Tesla could risk the loss of a key figure who once made the brand equivalent with electric vehicles.

Record-Breaking Targets and Company Valuation

Upon reaching the lofty targets outlined in the remuneration deal presented at Tesla's corporate assembly, he could become the first-ever person with a trillion-dollar net worth. To reach this goal, he must guide Tesla to a monumental $8.5 trillion in market value, which is eight times its current valuation. Additionally, he will be obligated to launch countless self-driving cars and advanced androids, while upholding the financial performance in the hundreds of billions throughout the coming ten years.

Reward System

The main goals of the pay package, organized into a dozen phases, delineate a trajectory for Tesla to attain its massive worth. Should targets be met, Musk would be eligible to realize gains on an extra 12% of the firm's equity. For this to occur, he must stay committed with the corporation for no less than 7.5 years. Additionally, he must help develop a corporate transition roadmap for the business he has managed for over 20 years. The share grants awarded by the new compensation plan, in addition to shares promised in his previous compensation plan, would result in Musk with a quarter stake of Tesla's stock. As of early November, Tesla shares were valued close to its yearly maximum, at roughly $450 each share.

Ambitious Targets

Over the course of a ten years, Musk will be tasked to produce 20 million electric vehicles to customers, distribute 10 million live FSD memberships, develop and sell 1 million humanoid robots, and introduce 1 million self-driving cabs in paid operations.

Musk will also be required to elevate the firm to $400 billion in actual earnings for four straight quarters. Tesla's real profits for the third quarter of 2025 were $4.2 billion, a 9% decrease from the same period last year.

By November, Musk's fortune was valued at $460 billion, the top in the planet, according to market tracking.

Restoring a Revoked Deal

Investors are additionally considering a arrangement that would compensate Musk after his previous pay package was overturned by a court in Delaware. The remuneration deal, valued at around $56 billion, was challenged by a sole shareholder who prevailed in court. The Delaware court of chancery denied Musk's pay package twice. Should investors pass the proposal in the shareholder meeting, Musk is expected to be paid the substantial payout regardless of if Tesla and Musk overturn the ruling of the lawsuit.

After Musk's previous compensation plan was first rescinded, he relocated Tesla's legal headquarters from Delaware to Texas. He repeated the action with the rocket firm and additional corporate bases. In 2024, per Texas statutes, shareholders once again voted to approve the pay package.

But Delaware's so-called "equity court" for a second time ruled against one of the biggest CEO pay deals in recent times. In the wake of that negative decision, Musk took to social media to voice displeasure with the state and its "influential presiding justice", arguably sparking a series of corporate exits that Delaware officials have sought to curb with legislation.

In considering whether Musk had excessive control in being granted that 2018 pay package, a prominent academic expert commented that the judge recognized that other "superstar CEOs" like Meta's Mark Zuckerberg and Amazon's Jeff Bezos were not given this kind of incentive-based contracts.