Tesla has granted CEO Elon Musk a new pay package valued at approximately $29 billion, aiming to secure his continued leadership as the company undergoes a significant strategic shift. The fresh compensation plan involves awarding Musk 96 million shares, echoing a previous agreement from 2018 that was recently nullified by a court.
Back in 2018, Tesla had promised Musk a $50 billion pay package tied to ambitious performance goals. However, a Delaware court struck it down earlier this year, ruling that Tesla’s board had failed to adequately protect shareholder interests during the deal’s approval. Musk has since appealed the court’s decision, claiming it was based on legal misinterpretations.
While that legal battle continues, Tesla’s board formed a special committee to reassess Musk’s compensation. The result is this new share award, intended to reinforce Musk’s commitment to Tesla at a time when he’s juggling several high-profile ventures, including SpaceX, X (formerly Twitter), and Neuralink.
Although Musk already holds about 13% of Tesla stock, the new package could increase his influence further. Importantly, Musk will still have to purchase the shares at $23.34 each—the same exercise price as his 2018 package—rather than receiving them for free.
This move comes as Tesla evolves beyond its image as an electric vehicle manufacturer. Musk has recently redirected focus from affordable EVs to emerging technologies like autonomous robotaxis and humanoid robots. The board views this transformation as a critical moment, and the new compensation deal is designed to ensure Musk remains central to Tesla’s future as it pivots toward becoming a broader tech and AI company.
