(Reuters) -Tesla's board has proposed a new compensation plan for CEO Elon Musk valued at about $1 trillion upon achieving certain lofty targets.

The proposed package, which would be the largest in corporate history if approved, underscores Tesla's bet on Musk to steer its transformation from a carmaker into a technology powerhouse.

The plan is expected to be tied to ambitious performance milestones, including growth in AI-driven products and autonomous systems.

Tesla's board earlier this year approved an interim compensation package for CEO Elon Musk worth about $29 billion in restricted stock, designed to keep him at the helm through at least 2030 as the company pivots to an AI-first strategy.

(Reporting by Akash Sriram in Bengaluru; Editing by Shreya Biswas and Anil D'Silva)