Tesla has awarded CEO Elon Musk a massive $29 billion stock grant, describing it as a reward for his “transformative and unprecedented” leadership since 2018. The grant, announced on Monday, gives Musk 96 million restricted shares and marks Tesla’s attempt to retain him amid growing investor concern and slumping financial performance.
The electric car giant noted that Musk hasn’t received any compensation in years after a Delaware court invalidated his 2018 pay package—twice. Tesla, currently appealing the ruling, called this new grant a “first step” in good faith to keep Musk focused on Tesla, even as he leads other ventures like SpaceX and xAI.
Despite Musk’s increasing involvement in right-wing politics and his alliance with Donald Trump—moves that have hurt Tesla’s image, sales, and stock price—the company defended the award, citing a $735 billion increase in market value under Musk’s leadership since 2018.
Tesla’s stock has fallen 25% this year as competition from both legacy automakers and Chinese EV companies heats up. In the latest quarter, Tesla’s profits dropped to $409 million from $1.39 billion, with revenue falling short of expectations.
The new stock grant requires Musk to pay $23.34 per share to exercise his restricted stock, matching the 2018 package’s terms. The original $56 billion pay plan had faced criticism over its approval process, with a judge calling it a result of sham negotiations with non-independent board members.
Investors have been increasingly anxious about Musk’s distractions, especially his deepening political role in Washington. Analysts believe the new compensation plan may restore some confidence. Wedbush’s Dan Ives said the grant could help keep Musk at Tesla through at least 2030 and reduce uncertainty for shareholders.
Following pressure from investors, Tesla has also scheduled its annual shareholders meeting for November to comply with Texas law. On Monday, Tesla shares rose nearly 2% in midday trading.
-Deeprows News
