Tesla's market value hit $100 billion for the first time today, triggering a payout plan that could be worth billions for Elon Musk, founder and chief of the electric carmaker. 

Shares in Tesla rose some 4.8% in opening trade on Wall Street to extend the gains in the value of the fast-growing maker of electric vehicles. 

Under a compensation plan approved by Telsa's board in 2018, Musk is to be paid in stock awards based on the value of the company, which could be worth as much as $50 billion if Tesla reaches $650 billion. 

Musk agreed to the plan, which would pay him nothing until Tesla's value reached $100 billion. 

The package, using shares which "vest" based on certain criteria, gives Musk stock worth around 1% of the company for each of 12 milestones over a 10-year period. 

For achieving the first milestone, Musk will get shares worth $346m if Tesla shares hold above $100 billion over six months, based on the formula. 

In announcing the plan in March 2018, the company said Musk "would receive no guaranteed compensation of any kind - no salary, no cash bonuses, and no equity that vests simply by the passage of time" without the rise in value. 

In 2019, Tesla sold some 367,000 vehicles, a rise of 50% from the prior year. 

That is a fraction of the 10 million sold by leading global automakers Toyota and Volkswagen, but investors have pushed up Tesla's value in the expectation that it is changing the industry. 

Tesla has begun manufacturing in China and has announced a new plant in Germany that could start production by 2021. 

The Tesla Model 3 electric car is designed to be more affordable than its earlier models - around half the cost of the $70,000 models - and is fueling expectations of stronger growth.