Tesla has unveiled a new compensation plan for Elon Musk that could hand the billionaire shares worth up to 12% of the electric vehicle maker if it achieves a string of extraordinary growth milestones over the next decade.

The package, revealed in a regulatory filing on Friday, would be paid entirely in stock, not cash, and is tied to targets including a rise in Tesla’s market valuation from around $1 trillion (£790bn) today to $8.5 trillion (£6.3tn), a level surpassing Nvidia’s current position as the world’s most valuable company. Musk would also have to oversee huge expansions in vehicle sales, robotics and its nascent driverless taxi business, while staying on as chief executive for at least ten years.

To unlock the first tranche, worth around 1% of Tesla, Musk must lift the company’s market value to $2 trillion (£1.48tn) while meeting profit and production goals. The plan’s later tranches include requirements to sell one million humanoid robots, one million robotaxis and boost total vehicle sales to 20 million – nearly triple Tesla’s cumulative sales to date.

The vote on the pay plan will take place at Tesla’s shareholder meeting on 6 November. It follows years of controversy over Musk’s previous $44.9bn (£33.3bn) package, which was overturned twice in court but later reinstated on appeal.

Tesla’s stock has fallen 25% this year amid declining sales, intensifying competition, and concerns over Musk’s political affiliations, which have hurt the company’s European market share. Recent quarterly profits plunged to $409m (£303m), down from $1.39bn (£1.03bn) a year earlier.

Despite these challenges, Tesla’s board argues Musk’s leadership remains central to the company’s future. Last month, the firm awarded him a $29bn (£21.5bn) stock grant, describing his record as “transformative and unprecedented”. Musk has also stated he needs more control to fend off activist investors.

The proposed plan underscores Tesla’s bet on its CEO’s vision, even as shareholders weigh the risks of tying company strategy so closely to one man.