Shares of the electric vehicle maker rose more than five per cent in morning trading.

Musk purchased various amounts of shares at different prices on Friday, according to a regulatory filing.

The move may be viewed by the markets as the billionaire remaining confident in the company’s future.

In a regulatory announcement, Tesla revealed a plan to award Musk up to 12% of the company’s shares in increments if certain performance goals are achieved, including significant boosts in vehicle production, stock valuation, and operating income.

With shareholder approval, this new pay arrangement could potentially make Musk the first executive to reach a trillion-dollar net worth, representing an unprecedented level of compensation in a nation already known for lavish executive pay.

But the payoff is in shares, not cash, and the goals are extreme as well.

To earn his initial portion of shares, which represent 1% of Tesla, Musk must demonstrate to investors that the company’s stock market value is $3 trillion—a figure twice the current valuation—and meet several additional benchmarks.

To qualify for all the shares, ultimately making him a trillionaire, Tesla’s market valuation would need to escalate to $12.7 trillion, effectively making it double the worth of Nvidia, the world’s current most valuable company.

Tesla has seen a plunge in sales this year, largely due to blowback over Musk’s affiliation with President Donald Trump.

Tesla also faces intensifying competition from the big Detroit automakers and particularly from China.

There is mounting concern among investors regarding the company’s future direction, given Musk’s significant involvement in Washington this year, where he has emerged as a key figure in the Trump administration’s efforts to downsize the federal government.

Tesla is set to hold its annual shareholders meeting on Nov. 6, where investors will vote on the new pay package.