Tesla Awards Elon Musk $29 Billion Stock to Secure Leadership

Tesla has granted CEO Elon Musk a new stock award valued at approximately $29 billion to retain him during a critical transition period as the company shifts focus from its core electric vehicle business to AI, robotics, and robotaxi projects. This interim award of 96 million shares, which Musk can buy at $23.34 each, is contingent on him remaining in a senior executive role for at least two more years and holding the shares for five years. The award addresses the legal limbo surrounding Musk's earlier $50 billion compensation package from 2018, which was struck down by a Delaware court and is currently under appeal. Despite Tesla's recent challenges—including falling sales, increased competition, and brand damage linked to Musk's political endorsements, notably of President Donald Trump—the board emphasized Musk's importance in leading Tesla's next era of growth and competing for AI talent. Musk remains the world's richest man with a net worth exceeding $400 billion, partly bolstered by this stock grant, which will increase his Tesla ownership stake to over 15%. While some experts view the new pay deal as lacking performance conditions, Tesla's board insists it is essential to keep Musk focused and motivated amid the company's strategic pivot.