Tesla's board has proposed a $US1 trillion ($1.52 trillion) compensation plan for CEO Elon Musk in what would be the largest corporate pay package in history.

The move underscores the hold Mr Musk has over the car maker as it attempts to transform into an AI and robotics powerhouse.

Here's what we know about the package.

What are the conditions?

The proposed plan would grant Mr Musk up to 12 per cent of Tesla's stock, worth about $US1.03 trillion if the company hits its target market value of $US8.6 trillion.

The plan requires boosting Tesla's valuation nearly eightfold, or about $US7.5 trillion, over the next decade.

To get his first package of shares equivalent to 1 per cent of the company, Mr Musk would have to convince investors in the stock market that Tesla is worth $US2 trilli

See Full Page