Tesla wants to pay Musk what it is worth

The world's richest man has consistently demanded a larger stake in the company to gain more control, even as a legal battle continues over his 2018 pay package – then valued at just $56 billion – Reuters comments.

The newly proposed remuneration is approximately 18 times higher than the challenged plan and is close to the current market valuation .

The plan underscores Tesla's reliance on Musk amid falling demand for electric vehicles , growing competition from Chinese rivals and pressure to deliver on its artificial intelligence ambitions, Reuters wrote.

“While bold performance-based pay is nothing new, the scale of this phenomenon is setting a new standard for CEO bonuses and will dominate boardroom discussions around the world,” Adam Sarhan, chief executive officer of 50 Park Investments in New York, told Reuters.

The regulatory filing puts Musk on a completely different level than other tech company executives, stating that " traditional compensation packages awarded to executives at other companies were deemed inappropriate to determine Mr. Musk's incentive compensation, " the agency wrote.

Musk transformed Tesla from a niche electric vehicle startup into the world's most valuable automaker by scaling up production, expanding globally and driving the industry toward electric mobility.

Recently, however, Tesla has been losing ground to Chinese rival BYD and other carmakers.