Tesla’s board has approved a $29 billion pay raise for CEO Elon Musk after a US court ruled against a previous pay deal worth $56 billion. The new payment is based on a 10-year package agreed in 2018, which was stuck in legal limbo until the recent court ruling.
The award was made by a special committee of the board and approved by Tesla’s chair Robyn Denholm and two other directors. They said the payment was a “good faith” gesture to Musk after his previous pay deal was rescinded due to concerns about his focus on his job, including his involvement in politics.
Musk’s business ventures, such as SpaceX and Neuralink, have raised concerns among shareholders. However, analysts say the new payment will increase investor confidence and boost Tesla shares, which have fallen nearly 20% this year.
The award is worth $29 billion based on Friday’s closing share price and will take Musk’s stake from 13% to about 15%. The directors said they believe the payment will incentivize Musk to remain focused on Tesla’s mission and increase his voting power.
Source: https://www.theguardian.com/technology/2025/aug/04/tesla-board-awards-elon-musk-30bn-worth-of-shares