Tesla Awards Elon Musk $29 Billion Stock Package Amid Leadership Focus

Tesla's board has approved a new compensation package for CEO Elon Musk, granting him 96 million shares valued at approximately $29 billion. This decision aims to retain Musk's leadership as the company navigates strategic shifts and competitive pressures in the electric vehicle market.

The new stock award follows a 2024 Delaware court ruling that invalidated Musk's previous compensation plan, citing flaws in the approval process. In response, Tesla's board formed a special committee to develop a revised package that aligns with shareholder interests and the company's long-term goals.

Under the terms of the new award, Musk must pay Tesla $23.34 per share upon vesting, matching the exercise price of the previous plan. The shares will vest over a two-year period, contingent upon Musk's continuous service in a senior leadership role at Tesla. Additionally, a five-year holding period is required, except to cover tax obligations or the purchase price.

This move underscores Tesla's commitment to retaining Musk's leadership amid challenges such as declining sales and increased competition in the electric vehicle sector. The company is also focusing on expanding into artificial intelligence and autonomous vehicle technologies, areas where Musk's vision is considered pivotal.

Shareholders are set to vote on the new compensation package at Tesla's upcoming annual meeting, scheduled for November. The outcome of this vote will determine the final approval of the award.

As of August 4, 2025, Tesla's stock is trading at $307.32, reflecting investor sentiment following the announcement of the new compensation package.