August 6: Tesla Inc’s board has approved a new share award valued at $29 billion for Chief Executive Elon Musk, seeking to retain the billionaire entrepreneur’s focus on the electric vehicle maker amid rising competition and a strained political climate.
The package, amounting to 96 million new Tesla shares, is contingent on shareholder approval and comes months after a Delaware court voided Musk’s earlier 2018 compensation plan — then valued at over $50 billion — following a legal challenge. The court decision is under appeal.
The board says the new stock award aims to “incentivize Elon to remain at Tesla,” noting his diverse business interests and past political affiliations. If the Delaware courts ultimately reinstate the 2018 award, the board stated that the new grant would either be forfeited or offset to avoid a “double dip.”
The new compensation is also expected to bolster Musk’s voting power, currently at 13%, at a time when Tesla is facing pressure from weakening sales, especially in China, and reduced government support for electric vehicles under U.S. President Donald Trump’s administration. Musk has criticized Trump’s spending plans, dubbed the “big beautiful bill,” and warned of “a few rough quarters” ahead.
Tesla is currently testing its autonomous driving software, with revenues from a potential commercial rollout expected only in late 2026. The company is also preparing to launch a lower-cost EV model in an effort to revive demand and compete with Chinese automakers.
A special committee formed by Tesla’s board earlier this year reviewed the compensation matter and stated it was confident the new award would help align Musk’s interests with Tesla’s long-term goals. The committee acknowledged Musk’s “extensive and wide-ranging” commitments but maintained the new grant would secure his continued leadership at the company.
Musk, who founded Tesla in 2003, has not publicly commented on the new award.
