Tesla said on Wednesday it would pay $700,000 to its global sales and service president, Jon McNeill, if the company's meets certain targets for 2017.
Tesla has been counting on its least pricey electric sedan, the Model 3, to become a profitable and high-volume manufacturer of electric vehicles.
Under the incentive compensation plan, McNeill will receive the amount if Tesla meets vehicle delivery targets during the third and fourth quarters of 2017, the company said in a filing.
The payout will also take into account operational and financial metrics relating to vehicle service performance, as well as costs and customer satisfaction scores during 2017, the company said.
The compensation will be paid in cash, stock options or restricted stock units, Tesla said.
Tesla CEO Elon Musk warned earlier this month that the company would face months of "manufacturing hell" as it increases production of the Model 3.
The company faces a big challenge as it ramps up production and service for all the Model 3, while continuing to produce its earlier models, Model S and Model X.