Tesla Grants $29 Billion in Stock to Retain Elon Musk Amid Strategic Shift

Tesla has approved a $29 billion stock grant for CEO Elon Musk to ensure his continued leadership as the company pivots toward artificial intelligence and robotics. The award, involving approximately 96 million shares, aims to reaffirm investor confidence following the legal nullification of Musk’s 2018 compensation package by a Delaware court earlier this year.

The Tesla board stated that Musk’s vision is critical as the company transitions beyond electric vehicles to autonomous technologies, including robotaxis and humanoid robots. The new compensation plan mandates that Musk remain in an executive role until at least August 2027. He must also hold the shares for five years, aside from any required tax deductions. If the court later reinstates the original 2018 plan, this new award will be either revoked or adjusted to avoid double compensation.

Tesla’s share price rose modestly following the announcement, suggesting investor approval amid a challenging business climate marked by slowing EV sales and growing competition. The move sets the stage for Tesla’s annual shareholder meeting in November, where a long-term compensation strategy for Musk will likely be formalized, as the company seeks to retain its top executive during a crucial phase of transformation.