The Board of Tesla has granted 96 million new shares worth about $29 billion to CEO Elon Musk, aiming to keep the billionaire at the helm as he fights a court ruling that voided his original pay deal for being unfair to shareholders.
The new award is designed to gradually boost Musk’s voting power, something he and shareholders have consistently said was key to keeping him focused on Tesla’s mission, the special committee said in the filing.
Musk’s Court Battles
In 2024, a Delaware court voided Musk’s 2018 compensation package, valued at over $50 billion, citing that the Tesla board’s approval process was flawed and unfair to shareholders.
Musk kicked off an appeal in March against the order, claiming a lower court judge made multiple legal errors in rescinding the record compensation. Tesla is currently at a turning point as Musk, its largest shareholder with a 13% stake, shifts focus from a promised affordable EV platform to robotaxis and humanoid robots, positioning the company more as an AI and robotics firm than an automaker.
“While we recognize Elon’s business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging … we are confident that this award will incentivize Elon to remain at Tesla,” the committee said in a regulatory filing on Monday.
New Shares
The interim award shares vest only if Musk remains in a key executive role through 2027. They also come with a five-year holding period except to cover tax payments or the purchase price.
Musk must pay Tesla $23.34 per share of restricted stock that vests, which is equal to the exercise price per share of the 2018 CEO Award, the company said in Monday’s filing.
