{"id":118678,"date":"2025-08-04T17:10:13","date_gmt":"2025-08-04T17:10:13","guid":{"rendered":"https:\/\/www.europesays.com\/us\/118678\/"},"modified":"2025-08-04T17:10:13","modified_gmt":"2025-08-04T17:10:13","slug":"tesla-board-awards-29bn-of-shares-to-elon-musk-elon-musk","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/118678\/","title":{"rendered":"Tesla board awards $29bn of shares to Elon Musk | Elon Musk"},"content":{"rendered":"

Tesla\u2019s board has approved the award of $29bn (\u00a322bn) worth of shares to its chief executive, Elon Musk, after a US court ruled against a previous pay deal<\/a> for the world\u2019s richest person.<\/p>\n

Musk will pay $2bn to buy 96m shares in the electric carmaker at the same price per share as a 10-year pay package agreed in 2018, which is stuck in legal limbo awaiting a court date for an appeal. The award was based on a recommendation from a \u201cspecial committee\u201d of the board.<\/p>\n

The announcement in a financial filing<\/a> was accompanied by a shareholder letter from two members of the committee, Robyn Denholm, Tesla\u2019s chair, and Kathleen Wilson-Thompson.<\/p>\n

It described the award as a \u201cgood faith\u201d payment to Musk after the previous pay deal, worth $56bn, was rescinded in 2024 by a judge in Delaware, where the company was incorporated until June that year.<\/p>\n

\u201cTo recognise what Elon has accomplished and the extraordinary value he delivered to Tesla<\/a> and our shareholders, we believe we must take action to honour the bargain that was struck in 2018,\u201d the directors wrote. \u201cAfter all, \u2018a deal is a deal\u2019.\u201d<\/p>\n

Denholm and Wilson-Thompson said they had reviewed investors\u2019 letters and posts on X \u2013 the social media network owned by Musk \u2013 and acknowledged concerns about his focus on his job.<\/p>\n

\u201cFrom those communications, we know that one of your top concerns is keeping Elon\u2019s energies focused on Tesla,\u201d they wrote. \u201cThis award is a critical first step toward achieving that goal.\u201d<\/p>\n

As well as running Tesla, Musk also owns the SpaceX rocket company, the social media platform X, the artificial intelligence company xAI and the brain implant business Neuralink. He has also made forays into Republican politics, damaging the Tesla brand and sales and raising concerns among shareholders<\/a>.<\/p>\n

Dan Ives, an analyst at Wedbush Securities and one of the most prominent voices of concern about Musk\u2019s political travails<\/a>, said the award would remove an overhang \u2013 a surplus of availability \u2013 on Tesla shares, increasing prices.<\/p>\n

\u201cMusk remains Tesla\u2019s big asset,\u201d Ives said.<\/p>\n

The award is worth about $29bn based on Friday\u2019s closing share price. Musk is worth $350bn, according to the Bloomberg billionaires index.<\/p>\n

Over the past year, Musk has become embroiled in US politics and a political relationship with Donald Trump that turned toxic after the president entered the White House for the second time, a feat assisted by the Tesla chief executive\u2019s financial and personal support.<\/p>\n

The furore put off left-leaning Tesla buyers<\/a> inside and outside the US, though competition in the electric car market<\/a> has also affected sales.<\/p>\n

A survey from the research firm S&P Global Mobility shared with Reuters showed that Tesla\u2019s customer loyalty has plunged since Musk endorsed Trump. It found 49.9% of Tesla-owning households in the market for a new car bought another Tesla last March. This was just below the industry average, but was down from 73% in June 2024. It edged back up to 57.4% in May this year.<\/p>\n

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Tom Libby, an S&P analyst, said the fall was \u201cunprecedented\u201d, adding: \u201cI\u2019ve never seen this rapid a decline in such a short period of time.\u201d<\/p>\n

Musk is Tesla\u2019s largest shareholder, and the new shares will take his stake from 13% to about 15%. He has said he wants greater control over the company to avoid being ousted by \u201cactivist shareholders\u201d. The company is shifting its focus to robotaxis and humanoid robots, in a move that positions Tesla more as an artificial intelligence and robotics firm than a carmaker.<\/p>\n

\u201cWhile we recognise Elon\u2019s business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging \u2026 we are confident that this award will incentivise Elon to remain at Tesla,\u201d wrote the directors.<\/p>\n

The award is designed to increase gradually Musk\u2019s voting power, something he and shareholders had consistently said was key to keeping him focused on Tesla\u2019s mission, the directors added.<\/p>\n

If the 2018 package is reinstated in full following an appeal to the Delaware courts, the new package will be forfeited.<\/p>\n

Tesla shares, which have fallen nearly 20% so far this year, rose more than 3% in early trading.<\/p>\n","protected":false},"excerpt":{"rendered":"Tesla\u2019s board has approved the award of $29bn (\u00a322bn) worth of shares to its chief executive, Elon Musk,…\n","protected":false},"author":3,"featured_media":118679,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[51,50,52],"class_list":{"0":"post-118678","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-headlines","9":"tag-news","10":"tag-top-stories"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114971608651014116","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/118678","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=118678"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/118678\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/118679"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=118678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=118678"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=118678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}