Tesla has presented a new compensation agreement for Chief Executive Officer Elon Musk, with a potential value of approximately $1 trillion, representing an unprecedented compensation package in U.S. corporate history.

This highly anticipated proposal aims to incentivize Musk to continue leading Tesla for years to come, establishing a series of ambitious performance metrics that Musk must achieve to receive full compensation, including expanding Tesla's robotaxi business and increasing the company's market value from its current approximately $1 trillion to at least $8.5 trillion. The plan spans ten years.

According to the terms of documents filed by Tesla on Friday, the additional shares Musk could potentially receive would bring his ownership stake in the electric vehicle manufacturer to at least 25%. Musk has previously publicly expressed his desire to obtain such a level of equity ownership.

The plan offers Musk attractive financial returns and expanded corporate control. The world's richest person's previous compensation package from 2018, valued at over $50 billion, was rejected by a Delaware court. While Tesla appeals that ruling, the board is seeking alternative ways to compensate its CEO, including granting stock awards worth approximately $30 billion in early August.

The incentive measures in the new plan are designed to keep Musk focused on Tesla while driving company growth in emerging markets such as robotics and artificial intelligence. Friday's filing also contains a non-binding shareholder proposal suggesting Tesla invest in Musk's startup xAI — a concept Musk has previously discussed.