07:38 AM EDT, 09/05/2025 (MT Newswires) -- (Updates with additional details on proposal, latest stock movement)

Tesla (TSLA) has proposed a new performance award for CEO Elon Musk of nearly $1 trillion, a proxy statement from the company showed Friday.

To be eligible for the full payout, Tesla would have to meet a series of targets, including raising the company's market capitalization to $8.5 trillion, reaching an adjusted EBITDA target of $400 billion, and hitting a production target of 20 million vehicles over 10 years.

If all the milestones are met, Musk could potentially own roughly 423.7 million common shares in the company, granted across 12 tranches, representing 12% of the adjusted share count. His voting share in the company would also increase.

The proposal also requests the company's board for approval to invest in Musk's xAI startup.

Shares of Tesla added 2% in recent premarket activity on Friday.

Price: 345.50, Change: +7.06, Percent Change: +2.09