Tesla has awarded CEO Elon Musk a stock grant valued at roughly $29 billion, a move designed to retain his leadership following the court-ordered cancellation of his previous compensation plan. The new package includes 96 million shares that Musk can access after serving two more years as CEO or any senior leadership role, according to a filing made public Monday.
The board described the grant as a “good faith” effort to keep Musk at the helm as Tesla shifts focus toward autonomous vehicles and artificial intelligence. The award comes at a delicate time: Tesla is contending with slowing electric vehicle sales, thinner profit margins, and criticism tied to Musk’s growing political presence. Despite those headwinds, the board cited Musk’s role as essential to the company’s future, particularly as it invests heavily in emerging technologies such as robotaxis and humanoid robots.
Notably, the compensation is not tied to performance targets, an unusual setup for a package of this scale. “Through Elon’s unique vision and leadership,” board members Robyn Denholm and Kathleen Wilson-Thompson wrote in a letter to shareholders, “Tesla is transitioning…to grow toward becoming a leader in A.I., robotics and related services.” Musk has argued that his influence is essential to Tesla’s long-term success, especially as it redirects resources from building cars toward high-cost, early‑stage technologies that have yet to deliver significant revenue.
Tesla’s decision also reflects a broader strategic and legal recalibration. After a Delaware judge struck down Musk’s prior $55 billion plan earlier this year, the company moved its corporate registration to Texas. Tesla has appealed that decision and said Mr. Musk would not “double dip” and receive the second pay package if a higher court reinstates the original compensation plan. As of this week, Musk remains the world’s richest person, with a net worth nearing $350 billion.
Written by: Neha Venna
