Tesla Board Proposes $29B Pay Package to Retain CEO Musk Amid Legal, Market Challenges

Tesla has introduced a new $29 billion compensation package for CEO Elon Musk, aiming to retain him amid intense competition for AI talent and following the voiding of his 2018 pay deal by a Delaware court. The package, consisting of 96 million restricted shares, reflects the company's commitment to securing Musk's leadership as it faces legal challenges, including a recent $329 million liability ruling related to an Autopilot fatal crash, and a decline in sales and stock performance. Musk has expressed concerns about activist investors potentially threatening his control over Tesla, which he views as critical to maintaining the company's direction in AI and robotics development, especially regarding public safety. Meanwhile, Tesla is advancing its Full Self-Driving technology by integrating improvements from its Robotaxi program into consumer vehicles, aiming for safer and more accurate autonomous driving capabilities. Despite setbacks, Tesla continues to signal its focus on innovation and leadership in the electric vehicle and AI sectors, underscoring the strategic importance of Musk's role and the evolving competitive landscape.