Tesla’s stock surged more than 7% in premarket trading on Monday as CEO Elon Musk disclosed the purchase of over 2.5 million shares worth about $1 billion.

According to a regulatory filing, Musk bought the shares on Friday at varying prices, a move analysts say signals his confidence in the company’s future.

The development comes as Tesla prepares for a crucial shareholder vote on a proposed pay package for Musk, which could potentially make him the world’s first trillionaire if a series of highly ambitious performance targets are met over the next decade.

Under the plan, Musk would be awarded shares equal to up to 12% of Tesla in 12 separate tranches if the company achieves milestones including sharp increases in car production, share price and operating profit. The payout, entirely in stock rather than cash, would represent one of the most outsized executive compensation deals in U.S. history.

To unlock the first tranche — equal to 1% of Tesla — Musk would need to lift the company’s valuation to $2 trillion, roughly double its current market capitalization, while meeting other operational goals. Securing the full package would require Tesla to reach a market value of $8.5 trillion, more than twice the worth of Nvidia, the world’s most valuable company today.

The ambitious proposal comes amid mounting challenges for Tesla. Sales have plunged this year, partly due to backlash over Musk’s close alignment with President Donald Trump, while competition from Detroit automakers and Chinese electric vehicle producers has intensified.

Investors have also expressed concern about Musk’s frequent involvement in Washington politics, where he has emerged as one of the most visible members of the Trump administration, particularly in efforts to reduce the size of the federal government.

Tesla’s annual shareholder meeting is scheduled for November 6, when the pay package will be put to a vote.