Tesla awards $29 billion in shares to Elon Musk amid legal battle over 2018 pay package
EV giant Tesla has awarded stocks worth approximately $29 billion to CEO Elon Musk, marking a major move to retain and incentivise him as the company transitions into AI, robotics, and beyond, in its official announcement. Despite not receiving meaningful compensation since 2017, Musk is now set to receive 96 million restricted shares, equal to nearly one-third of the original 2018 package. These shares come with conditions:A two-year vesting period during which Musk must remain in a senior leadership role at Tesla.A purchase price of $23.34 per share, matching the split-adjusted price of the 2018 award.A five-year holding period post-grant, with limited exceptions for tax and purchase-price coverage.A no ‘double dip’ clause if the Delaware Supreme Court reinstates the original 2018 award, this interim award will be forfeited or adjusted accordingly.Tesla emphasised that the move is a good faith step in honoring Musk’s past achievements and future potential, amid an intense talent war in the AI space. The company credits Musk with driving $735 billion in market value, making his leadership critical as Tesla shifts from EV manufacturing into frontier technologies.The Special Committee, composed of two board members (excluding Elon and his brother Kimbal Musk), framed the award as a decisive retention strategy. They noted the urgent need to keep Musk’s attention on Tesla amid his growing responsibilities at other ventures such as SpaceX, xAI, Neuralink, and X Corp.Tesla shareholders will vote on a longer-term compensation plan for Musk at the November 6 annual meeting.
EV giant Tesla has awarded stocks worth approximately $29 billion to CEO Elon Musk, marking a major move to retain and incentivise him as the company transitions into AI, robotics, and beyond, in its official announcement.
Despite not receiving meaningful compensation since 2017, Musk is now set to receive 96 million restricted shares, equal to nearly one-third of the original 2018 package.
These shares come with conditions:
A two-year vesting period during which Musk must remain in a senior leadership role at Tesla.
A purchase price of $23.34 per share, matching the split-adjusted price of the 2018 award.
A five-year holding period post-grant, with limited exceptions for tax and purchase-price coverage.
A no ‘double dip’ clause if the Delaware Supreme Court reinstates the original 2018 award, this interim award will be forfeited or adjusted accordingly.
Tesla emphasised that the move is a good faith step in honoring Musk’s past achievements and future potential, amid an intense talent war in the AI space. The company credits Musk with driving $735 billion in market value, making his leadership critical as Tesla shifts from EV manufacturing into frontier technologies.
The Special Committee, composed of two board members (excluding Elon and his brother Kimbal Musk), framed the award as a decisive retention strategy. They noted the urgent need to keep Musk’s attention on Tesla amid his growing responsibilities at other ventures such as SpaceX, xAI, Neuralink, and X Corp.
Tesla shareholders will vote on a longer-term compensation plan for Musk at the November 6 annual meeting.
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