Tesla has awarded CEO Elon Musk nearly $30 billion in shares, despite ongoing legal disputes and investor concerns over executive compensation. The company granted Musk 96 million shares, valued at about $29 billion, as part of a new 2025 interim award—an attempt to retain his leadership amid rising competition and strategic shifts toward AI and robotics.
This move follows a Delaware court’s decision last year to void a controversial $56 billion 2018 pay package, labeling it “excessive” and poorly justified. Musk is currently appealing that ruling, claiming legal errors.
Meanwhile, Musk has applied pressure on Tesla’s board, warning he might step away unless he gains greater control—specifically, a 25% stake, up from his current 12.7%. He has argued that such influence is necessary to guide the company effectively, especially in the face of activist investor threats.
Tesla says retaining Musk is vital amid what it describes as a “war for AI talent,” with rival tech giants offering billion-dollar compensation packages to secure key hires. The company emphasized Musk’s role in driving innovation and long-term shareholder value, particularly as it shifts focus toward autonomous vehicles and robotics.
Tesla shares rose over 2% in pre-market trading following the announcement, with analysts suggesting the deal could secure Musk’s leadership through 2030. However, calls continue for Tesla’s board to finalize a sustainable compensation strategy ahead of a key November shareholder meeting.
Despite recent brand struggles and slowing EV demand, Tesla is betting big on Musk—and on AI—to revive its edge in a fast-evolving market.
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