Tesla has granted CEO Elon Musk a massive 96 million-share award valued at approximately $29 billion, in a move designed to secure his long-term leadership as the company pivots deeper into AI and robotics.
The new award comes in response to a Delaware court’s 2024 decision that voided Musk’s controversial 2018 compensation package—then worth over $50 billion—on the grounds that it was unfairly approved and detrimental to shareholders. Musk has been appealing the ruling, arguing that the court erred in its judgment, News.Az reports, citing CNBC.
To address concerns and structure a new path forward, Tesla’s board formed a special committee earlier this year to reevaluate Musk’s compensation. The new package mirrors key aspects of the rescinded plan and is intended to increase Musk’s voting power over time, which he and his supporters argue is crucial to keeping him focused on Tesla’s long-term vision.
“We are confident that this award will incentivize Elon to remain at Tesla,” the special committee stated, acknowledging Musk’s extensive involvement in multiple ventures.
The deal requires Musk to pay $23.34 per share of restricted stock that vests—matching the original 2018 award’s exercise price. Vesting conditions were not detailed in the filing but are expected to mirror or refine those of the original plan, which was tied to aggressive financial and operational milestones.
Tesla is undergoing a strategic shift, moving away from its promised affordable EV platform toward more ambitious projects like robotaxis and humanoid robots, as Musk increasingly positions the company as a tech and AI powerhouse rather than a traditional automaker.
Tesla shares rose more than 2% in premarket trading following the announcement.