Tesla has authorized a massive stock grant to CEO Elon Musk to secure his leadership as the company shifts focus. The new $29 billion package includes 96 million shares, aimed at honoring a previous deal struck down in court. Tesla leadership sees this as a necessary move to guide the company through its strategic pivot toward robotaxis and humanoid robotics. The company wants Musk’s full attention as sales decline and competition rises in the electric vehicle space.
The new award serves as a temporary replacement for Musk’s earlier $50 billion compensation package, which a Delaware court rejected. Tesla structured the plan so Musk can claim the shares only if he stays as a top executive for another two years. Additionally, he must hold the shares for five years before selling, and the purchase price remains $23.34 per share—the same as in 2018. While the original package remains under legal appeal, Tesla chose to proceed with this interim arrangement.
The board also announced plans to present a longer-term CEO compensation plan at its next investor meeting. This upcoming proposal reflects the company’s desire to keep Tesla leadership steady during a period of major change. As Tesla expands into autonomous vehicles and AI-driven systems, the board believes Musk is best positioned to lead. He has been the architect of Tesla’s robotaxi vision and the public face of the brand’s innovation strategy.
However, the decision comes at a time of growing concern about Musk’s attention being divided across multiple ventures. His companies SpaceX and xAI demand time and resources, while his political activities spark controversy. Musk’s involvement in debates and associations with political figures have raised red flags among board members. Some investors fear his focus on Tesla may weaken if he does not gain more control. Musk has even warned he may exit the company without additional influence.
With the new shares, Musk’s stake in Tesla will increase from 12.7% to 15%, strengthening his control. This consolidation of power aligns with his long-standing desire for deeper influence over company decisions. Before this award, he had no active compensation package and had not received major pay since 2017. Tesla leadership argued the new deal is crucial to retain what they called Musk’s “extraordinary talent.” The board considers the interim award a practical way to manage uncertainty as the 2018 case drags on.
Despite legal pressures and public scrutiny, Tesla leadership remains committed to Musk’s vision. The board believes continuity is essential as the company tackles a shifting automotive market. While some investors debate the deal’s size, others agree that stability is key. Tesla sees this plan as an investment in its long-term future, powered by innovation and strong executive guidance. With Musk firmly at the center, Tesla aims to lead the next wave of transportation.
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