Tesla Awards Elon Musk $29 Billion in Stock
Tesla has approved a new $29 billion stock grant for CEO Elon Musk, aiming to keep him committed to the company after his previous pay package was struck down in court. The new plan gives Musk 96 million shares over two years, with no performance goals attached—only the condition that he remain in a senior leadership role. This would increase Musk’s ownership to nearly 16% of Tesla, further solidifying his control as the company reorients toward robotics and AI-driven robotaxis.
The move has sparked backlash from critics who say Tesla’s board is too close to Musk and failing to act independently. The board’s special committee—made up of two members not closely tied to Musk—said the grant was a strategic move to "keep Elon’s energies focused" on Tesla's future. With sales and profits declining and Tesla losing market share, many are questioning the timing and scale of such a reward. Despite this, supporters argue Musk remains Tesla’s most valuable asset and a visionary in the AI space.
Legal experts note that by relocating Tesla’s headquarters to Texas—where shareholder lawsuits are harder to file—the company has made this package nearly immune to legal challenges. Meanwhile, Tesla has not committed to performance milestones for Musk's compensation, a sharp contrast to most executive pay plans. As criticism mounts, Tesla’s board says a longer-term compensation plan will be proposed at the annual shareholder meeting in November.
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