A new payment plan for the CEO was approved by Tesla shareholders on Wednesday, 21st of March, a spokesperson confirmed.
It is believed to be the biggest share-based pay deal in US corporate history.
Musk will only get the shares if Tesla hits certain targets related to metrics such as sales and share price.
His incentive-based package essentially states that if Musk hits a series of performance milestones between now and January 2028, and he drives his electric car company's market value 12 times higher — taking it from $54 billion to $650 billion — he'll become insanely rich.
Musk currently has a stake in Tesla worth about $12 billion. The vote was seen as a key test of support for Musk's leadership of the loss-making car maker, which is struggling to increase production.
Some big shareholders had said they would back the proposal, but prominent advisory groups argued it was too generous.
According to the new compensation plan, Tesla estimates the value of the stock awards to be $2.6 billion, using accounting methods for estimating the cash value of stock options. But if Tesla's market value balloons just as the payment plan hopes, those stock awards could be worth nearly $56 billion, according to a public filing.
Musk, who owns about a fifth of the electric car company, did not take part in the vote.
Tesla shares jumped about 3% after the vote was reported. About 73% of votes were in favor of the plan, excluding shares owned by Musk and his brother.
The 10-year plan calls for shares to be distributed in tranches, with the first award contingent on the firm reaching $100bn in market capitalization.
There are no guarantees, however, that Musk can hit those targets and become the richest person on Earth. And if Musk fails to hit the goals laid out in his pay package, Tesla won't pay him at all.