Tesla has granted its CEO Elon Musk a massive $29 billion share award in a bid to retain the billionaire’s leadership.
Gatekeepers News reports that the move comes after a US court struck down Musk’s 2018 pay package worth over $50 billion, ruling it was “unfair to shareholders.”
Tesla’s board believes the new award “will incentivize Elon to remain at Tesla” as the company pivots from electric vehicles to AI and robotics.
“We have recommended this award as a first step, ‘good faith’ payment,” Tesla’s board wrote. “Retaining Elon is more important than ever before.”
The board described Musk as a “magnet for hiring and retaining talent at Tesla” with a “proven track record” in building revolutionary businesses.
The award consists of 96 million restricted stock units (RSUs) and would boost Musk’s voting power on the electric car company’s board. However, if the Delaware court reinstates Musk’s 2018 pay deal worth $56 billion, he would have to forfeit or return the latest share award.
Dan Ives from Wedbush Securities said Tesla’s move was necessary to keep Musk at the firm, especially in the “AI arms race.” “The biggest asset for Tesla is Musk, the board need to do this, and I believe it’s a huge step forward,” he added.
Tesla’s stock rose 2.4% following the announcement, despite the company’s struggles in 2025 with declining electric vehicle sales and weaker policy support in the US.
Musk’s other roles include executive positions at xAI, Neuralink, and The Boring Company, and he recently announced stepping back from politics after serving as US President Donald Trump’s adviser.
