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Tesla shareholders convened this Thursday to determine on a substantial remuneration plan for the company's leader worth approximately close to $1 trillion. Upon approval, this package would signal shareholder trust that the billionaire can steer the car company into an era dominated by artificial intelligence and automation. If rejected, Tesla could confront the departure of a pioneering CEO who once made the company name equivalent with zero-emission cars.

Record-Breaking Targets and Company Valuation

Upon reaching the lofty objectives specified in the remuneration deal presented at Tesla's corporate assembly, he could become the first-ever trillionaire. To reach this goal, he must steer Tesla to a staggering $8.5 trillion in market value, which is 800% of its current valuation. Furthermore, he will be obligated to deploy millions self-driving cars and humanoid robots, while maintaining the company's bottom line in the massive revenue figures in the upcoming decade.

Payment Breakdown

The key aims of the pay package, split into 12 tranches, chart a roadmap for Tesla to attain its enormous valuation. Should targets be met, Musk would be able to benefit from an additional 12% of the corporation's shares. To qualify, he must maintain involvement with the corporation for no less than 7.5 years. Additionally, he must help develop a future leadership strategy for the enterprise he has headed for more than 20 years. The stock options provided by the updated remuneration deal, alongside shares assured in his earlier deal, would grant Musk with 25 percent equity of Tesla's shares. In early November, Tesla shares were valued approaching its yearly maximum, at around $450 each share.

Ambitious Targets

Throughout a decade, Musk will be required to deliver 20 million EVs to buyers, sell 10 million live FSD memberships, develop and sell 1 million advanced androids, and introduce 1 million robotaxis in paid operations.

Musk will furthermore be required to bring the corporation to $400 billion in real profits for four straight quarters. Tesla's actual earnings for the Q3 2025 were $4.2 billion, a 9% decrease from the year before.

In November, Musk's net worth was valued at $460 billion, the highest in the world, as reported by wealth indexes.

Restoring a Invalidated Package

Stockholders are additionally considering a proposal that would reward Musk after his earlier remuneration deal was overturned by a court in Delaware. The compensation package, estimated to be $56 billion, was challenged by a single stockholder who won his case. The Delaware court of chancery dismissed Musk's pay package twice. If shareholders approve the proposal in Thursday's vote, Musk is set to be paid the huge sum regardless of if Tesla and Musk succeed in appealing of the lawsuit.

Subsequent to Musk's previous compensation plan was initially invalidated, he moved Tesla's business registration out of Delaware and into Texas. He repeated the action with SpaceX and other companies' headquarters. In 2024, according to Texas regulations, shareholders once again voted to approve the compensation plan.

But Delaware's so-called "court of equity" again ruled against one of the most substantial CEO pay deals in modern history. In the wake of that negative decision, Musk posted on his accounts to express dissatisfaction with the region and its "activist chief judge", arguably igniting a number of company relocations that Delaware lawmakers have tried to stop with regulatory measures.

In considering whether Musk had excessive control in being awarded that earlier remuneration deal, a prominent legal scholar commented that the court recognized that other "celebrity leaders" like Facebook's founder and the Amazon founder were not granted this type of incentive-based contracts.