Tesla’s Board of Directors has announced on Friday a fresh compensation plan for Chief Executive Elon Musk, linking the potential payout to unprecedented growth targets, including a market capitalization of nearly $7.5 trillion. Shortly after the announcement, Tesla shares are trading 2.20% higher at $346 during Friday’s pre-market trading session. Outlined in a shareholder letter, the 2025 CEO Performance Award raises the bar well beyond Musk’s 2018 package. Besides the pay package, the Board has also proposed Tesla’s investment in Musk’s xAI company. Tesla’s board said the package was developed after a seven-month review by a special committee tasked with evaluating the company’s long-term strategic ambitions.