Shareholder Shock: Tesla Re-Approves Elon Musk’s $29B Payday.

Shareholder Shock: Tesla Re-Approves Elon Musk’s $29B Payday.

In the USA

The news as it trends

Tesla’s board has approved a new $29 billion stock award for CEO Elon Musk, following the nullification of his original $56 billion compensation package by a Delaware court.

The court had previously ruled that the 2018 award was improperly negotiated and excessive.

Despite the ongoing legal appeal, Tesla’s leadership has moved to secure Musk’s continued role by granting him 96 million shares—matching the original allotment.

To access the shares, Musk is required to pay $23.34 per share, the same condition set in the initial agreement.

According to Tesla’s filing, if the court reinstates the original compensation plan, the newly approved interim award will be voided.

If the appeal fails, the new package will serve as Musk’s official pay.

The stock award comes as Tesla shifts focus from traditional electric vehicles to advanced technology initiatives, including autonomous driving, artificial intelligence, and humanoid robotics.

The move highlights the board’s determination to preserve Elon Musk’s leadership as Tesla pivots toward broader technological innovation beyond electric vehicles.

This decision represents a pivotal moment in the company’s strategic direction, shedding light on the evolving legal landscape and the complexities surrounding executive pay.

Yetunde B reports for Yeyetunde’s Blog.