Tesla granted Elon Musk nearly $30 billion worth of shares as part of an “interim” compensation package to help retain the company’s CEO, according to a Monday announcement. The grant of 96 million shares would give Musk nearly 16% ownership stake if he stays in a senior leadership role for two years.
The move comes after a judge invalidated Musk’s previous pay plan last year and Tesla appeals that decision. Critics say it’s unusual for the board to award such a substantial package during declining sales, with some shareholders expressing concerns about the lack of oversight over Musk’s actions.
The new award is seen as an attempt by Tesla to solidify Musk’s position at the company, despite criticism that the board lacks independence from Musk. The package reflects confidence in Musk’s ability to succeed in artificial intelligence, but critics argue it comes at the expense of investors’ interests.
Tesla’s market value has risen by over $900 billion since Musk received his previous pay plan, but sales have declined as the company focuses on autonomous driving and robotics technologies that don’t yet generate significant revenue.
Source: https://www.nytimes.com/2025/08/04/business/tesla-elon-musk-29-billion.html