Tesla Approves Share Award Worth $29 Billion In ‘Good Faith’ To Elon Musk

In a major move aimed at retaining CEO Elon Musk during a critical phase for the company, Tesla has approved a fresh stock award worth approximately $29 billion. This interim pay deal comes as the electric vehicle (EV) maker pivots from its core auto operations toward the ambitious development of robotaxis and humanoid robots.

The board has issued Musk 96 million new shares, which he can claim if he continues in a senior executive position for another two years and the contested 2018 compensation package, currently under appeal, is not reinstated by the Delaware court. The new award replicates the 2018 deal’s exercise price of $23.34 per share and requires Musk to hold the shares for five years, reported Reuters.

Tesla said this award is a gesture of “good faith,” recognising Musk’s contribution and as an early step towards resolving the court-disputed 2018 package, originally valued at over $50 billion. A broader CEO compensation plan is expected to be presented to shareholders for approval at the company's annual meeting on November 6.