Tesla Grants Elon Musk $29B Shares Amid Leadership Legal Battles

Tesla has granted CEO Elon Musk 96 million restricted stock options worth nearly $29 billion in a new compensation package aimed at retaining his leadership amid a court ruling that voided his original $50 billion pay deal for being unfair to shareholders. The new award, which Musk must pay $23.34 per share to exercise, is structured to gradually increase his voting power and keep him focused on Tesla's strategic shift from affordable electric vehicles to AI, robotics, and robotaxis. This move follows a Delaware court's 2024 decision that invalidated Musk's 2018 compensation package due to flawed approval processes, a ruling Musk is currently appealing. Tesla's board emphasized the importance of Musk's unique vision and leadership to navigate the company's transition and maintain shareholder value. Despite financial struggles, including falling profits and a 25% stock drop in 2025 partly attributed to investor concerns over Musk's political ties to President Donald Trump, the board remains confident that the new award will incentivize Musk to remain at the company. Tesla shares responded positively to the announcement, rising over 2% in premarket trading.