Tesla Grants Elon Musk $29 Billion in Shares Amid Ongoing Legal Battle
Tesla has awarded its CEO, Elon Musk, 96 million shares of company stock, valued at approximately $29 billion, as a provisional compensation package while a legal dispute over his previous remuneration continues. The shares were granted at a price of $23.34 each, mirroring the rate at the time his initial compensation plan was adopted in 2018.
Currently trading at $302.60 (as of Friday’s close on the New York Stock Exchange), the package aims to compensate Musk for future services and recognize his contributions to the company and its shareholders. Tesla stated the grant is a “good faith” payment and a first step toward a larger resolution.
The company highlighted Musk’s leadership as Tesla transitions from a leader in electric vehicles and renewable energy to a key player in artificial intelligence (AI), robotics, and related services, emphasizing a “critical turning point” for the company.
This grant comes after years of legal challenges to Musk’s 2018 compensation plan, initially estimated at $56 billion. A Delaware judge invalidated the plan in January 2024, citing “erroneous” and “misleading” facts presented to shareholders before its approval.
While shareholders re-approved the plan in June 2024, the Delaware Justice again rejected it in December.Tesla appealed the decision and formed a special commitee to review the matter. Musk is restricted from utilizing the new share package for up to two years, contingent on his continued role in senior management, and would forfeit the award if Tesla prevails in a case before the Delaware Supreme Court.
Tesla justified the provisional reward, citing the intensifying competition for talent in the AI sector and the company’s pivotal position in the industry, sharing the rationale on its X network platform (also owned by Musk).
