Tesla’s board has granted CEO Elon Musk a fresh compensation package worth approximately $29 billion, tied to 96 million shares, according to a company filing released Monday.
The shares will vest over the next two years, provided Musk remains as chief executive or in another senior leadership position. However, if Musk is ultimately allowed to exercise shares from his disputed 2018 pay deal, the current award will be canceled. That earlier package, initially valued at $56 billion, was invalidated in January by Delaware Chancellor Kathaleen McCormick, who ruled it was improperly approved.
Following the ruling, Musk relocated Tesla’s incorporation from Delaware to Texas and has appealed the court’s decision to the Delaware Supreme Court.
Tesla stock rose more than 2% after the filing became public.
The company disclosed that a special board committee, led by chair Robyn Denholm and director Kathleen Wilson-Thompson, approved the new pay plan. It does not restrict Musk from pursuing other ventures or political interests.
Last year, Musk supported President Donald Trump’s reelection campaign and later worked for his administration as a special government employee overseeing DOGE, a federal streamlining initiative. His political activity and leadership style have contributed to growing backlash, which analysts say is affecting Tesla’s reputation and sales in both the U.S. and Europe.
Musk currently owns about 13% of Tesla shares. In early 2024, he demanded more control over the company, stating on X that he would limit Tesla’s role in AI and robotics unless granted 25% voting power.
He had already formed xAI in 2023, an artificial intelligence startup now working with Tesla to integrate its Grok chatbot into electric vehicles. The company’s creation was not disclosed to shareholders at the time.
In July, Tesla reported a decline in quarterly sales and a 16% drop in automotive revenue. On an earnings call, Musk warned of possible continued challenges, citing the expiration of EV tax credits as a potential hurdle.
Tesla is scheduled to hold its next shareholder meeting in November.
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