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Investors in the electric car maker gathered this Thursday to determine on a massive pay deal for the company's leader estimated at close to $1 trillion. Should it pass, this package would signal shareholder trust that the billionaire can guide the automaker into an era defined by AI technology and robotics. If rejected, Tesla could potentially face the departure of a pioneering CEO who once made the company name synonymous with electric vehicles.

Historic Goals and Company Valuation

If the CEO meets the lofty milestones specified in the pay package presented at Tesla's annual meeting, he could be crowned the pioneering person with a trillion-dollar net worth. To reach this goal, he must guide Tesla to a astronomical $8.5 trillion in company worth, which is eight times its present worth. Furthermore, he will be tasked to deploy millions self-driving cars and humanoid robots, while upholding the corporate profits in the hundreds of billions in the upcoming decade.

Compensation Structure

The main goals of the remuneration structure, organized into twelve stages, outline a path for Tesla to achieve its colossal worth. Upon achievement, Musk would be eligible to benefit from an further 12% of the corporation's shares. For this to occur, he must maintain involvement with the company for no less than 7.5 years. Furthermore, he is required to contribute to forming a future leadership strategy for the organization he has headed for more than 20 years. The stock options offered by the updated remuneration deal, in addition to shares assured in his 2018 package, would leave Musk with a quarter stake of Tesla's stock. As of early November, Tesla stock was trading close to its 52-week high, at roughly $450 each share.

Formidable Objectives

Throughout a ten years, Musk will be tasked to manufacture 20 million EVs to customers, sell 10 million operational autonomous driving plans, develop and sell 1 million humanoid robots, and launch 1 million autonomous taxis in revenue-generating use.

Musk will also be tasked to bring the company to $400 billion in tangible revenue for a full year. Tesla's actual earnings for the July-September 2025 were $4.2 billion, a 9% decrease from the year before.

By November, Musk's personal wealth was pegged at $460 billion, the top in the world, as reported by market tracking.

Reinstating a Invalidated Deal

Stockholders are also evaluating a plan that would remunerate Musk after his earlier remuneration deal was voided by a legal authority in Delaware. The pay plan, valued at around $56 billion, was challenged by a sole shareholder who won his case. The Delaware court of chancery denied Musk's remuneration deal on two occasions. If shareholders approve the arrangement in the Thursday ballot, Musk is expected to be awarded the substantial payout irrespective of whether Tesla and Musk succeed in appealing of the case.

After Musk's previous compensation plan was first rescinded, he transferred Tesla's corporate home to Texas from Delaware. He followed suit with SpaceX and other companies' headquarters. In 2024, per Texas statutes, shareholders once again approved the compensation plan.

But Delaware's known as "judicial body" for a second time ruled against one of the biggest CEO pay deals in modern history. Following that adverse judgment, Musk used online platforms to express dissatisfaction with the jurisdiction and its "prominent judicial figure", perhaps igniting a series of corporate exits that Delaware lawmakers have sought to curb with legislation.

In evaluating whether Musk had excessive control in being given that earlier remuneration deal, a prominent legal scholar commented that the judge acknowledged that other "high-profile executives" like Facebook's founder and Amazon's Jeff Bezos were not awarded this sort of goal-oriented agreements.