Tesla approves share award worth $29b to Elon Musk
- Last updated: August 5, 2025 | 11:10
Tesla has granted CEO Elon Musk shares worth about $29 billion in a new pay deal aimed at keeping the billionaire entrepreneur at the helm during a crucial pivot from its struggling core auto business to robotaxis and humanoid robots.
The company described the “interim award” of the 96 million new shares as a first step, “good faith” payment to honour Musk’s more than $50 billion pay package from 2018 that was struck down by a Delaware court last year.
Musk can claim the new award if he remains in a top executive role for another two years and a court does not reinstate the 2018 package currently on appeal.
He has to hold the shares for five years and can buy them for $23.34 per share, the same as the exercise price of the 2018 award. Tesla will also put to vote a longer-term CEO compensation plan at its annual investor meeting on Nov.6.
The move is meant to keep Musk, the public face of Tesla and architect of its robotaxi strategy, focused on the electric-vehicle maker as it navigates a shift to cybercabs and robotics from its mainstay auto business.
It also seems to quell any speculation that the board’s patience with Musk could be wearing thin because of the recent tumultuous months, including the CEO’s foray into politics.
The move to give Musk greater control of the company suggests that directors still see him as best-suited to tackle Tesla’s growing list of challenges in the years ahead.
Sales have been falling at the company due to its aging vehicle line-up, tough competition and Musk’s right-wing political stances that have tarnished its brand.
S&P Global Mobility data shared exclusively with Reuters showed on Monday that Tesla’s brand loyalty had plunged since Musk endorsed US President Donald Trump last summer.
Musk’s involvement in politics and his wider business empire, including AI startup xAI, have also sparked concerns about his devotion to Tesla, the main source of his wealth. Musk has threatened to leave unless he gets more control over Tesla.
Reuters