Tesla grants $29bn in shares to Musk

August 5, 2025 (MLN): Electric vehicle giant Tesla has approved an interim compensation package worth $29 billion for its CEO, Elon Musk, even as a legal fight over his earlier pay deal continues in court.

The move signals Tesla’s commitment to retaining Musk, stating that compensating him is “more important than ever before.”

The company shared that it will issue 96 million new Tesla shares to Musk as a “first step” and a “good faith” payment.

“We intend to compensate our CEO for his future services commensurate with his contributions to our company and shareholders,” shared via Tesla’s official X account.

The massive stock award comes just eight months after a Delaware court rejected Musk’s earlier $55.8bn pay package, calling it excessive and unfair to shareholders.

The ruling denied Tesla's attempt to reinstate that deal through a shareholder vote. Musk has since appealed the decision.

Under the new plan, Musk’s stake in Tesla currently around 13 percent would increase significantly. However, he would be required to forfeit the new shares if the appeals court ultimately restores the original 2018 compensation package.

The latest payout is expected to reignite debate over corporate governance at Tesla and the extent of the board’s independence in overseeing its high-profile CEO, who remains the world’s richest individual.

The statement posted on Tesla's X account came in the form of a letter to shareholders written by Robyn Denholm and Kathleen Wilson-Thompson, the two members of the board's special committee addressing the Musk compensation.

 Copyright Mettis Link News