Tesla has awarded its CEO, Elon Musk, stock worth $29 billion in an effort to keep him at the company.
This move comes after a U.S. court struck down his original $56 billion compensation package from 2018, deeming it “unfair to shareholders.” Musk has appealed the 2024 ruling by the Delaware court.
The original payout was contingent on Musk meeting specific targets—including market capitalization, sales, and profits—which he successfully achieved.
On Monday, Tesla informed shareholders that it is “confident” the $29 billion stock grant will motivate Musk to stay with Tesla, especially as “the war for AI talent intensifies.”
The new award is also expected to strengthen Musk’s voting power on the electric carmaker’s board of directors.
“It is critical that we retain and motivate our exceptional talent—starting with Elon,” the Tesla board wrote on X, adding, “No one matches Elon’s remarkable blend of leadership experience and technical expertise.”
Tesla further emphasized Musk’s “proven track record” in building “revolutionary and profitable companies.”
However, the company clarified that if the court reinstates the original 2018 pay package, Musk will forfeit this latest stock award.
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