Tesla has just handed CEO Elon Musk a massive payday of $29 billion worth of company shares. But this isn’t just about making the world’s richest man even richer. According to Tesla, it’s a reward for years of “transformative and unprecedented” growth, and a move to keep Musk focused on the company’s future.
The announcement comes as Tesla faces two big challenges–a drop in global sales and an ongoing legal battle over Musk’s original pay package from 2018. That earlier compensation plan was recently struck down by a judge in Delaware. Tesla is still appealing the ruling, but in the meantime, the board has approved this new stock award as a “first step” and a “good faith” payment.
So why now?
Tesla says Musk hasn’t received any pay in years because of the court fight. At the same time, Musk has been very vocal about needing more shares and more control to stay committed to Tesla, especially with his other ventures like SpaceX and xAI keeping him busy.
“Rewarding Elon for what he has done and continues to do for Tesla is the right thing to do,” the company said, pointing out that Tesla’s market value has grown by $735 billion since 2018.
Musk is seen as the driving force behind Tesla’s shift toward robotaxis and robotics, and the board clearly wants to make sure he sticks around for that journey. With this new award, his stake in Tesla will increase from 12.7% to over 15%.
Interestingly, the move also comes as Musk faces criticism for getting involved in US politics and as data shows that Tesla’s brand loyalty has taken a hit. But by approving this payment, the board seems to be sending a clear message: they still believe Musk is the right person to lead Tesla through whatever comes next.
For now, Musk’s total net worth has jumped to around $350 billion, according to Bloomberg. And Tesla? It’s betting big again on the man who built its brand.
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