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Tesla grants $29 billion in stock to Elon Musk amid legal battle
Tesla has awarded 96 million shares—worth approximately $29 billion—to CEO Elon Musk, despite an ongoing legal battle surrounding his controversial compensation package.
According to a filing with the U.S. Securities and Exchange Commission on Monday, Musk was authorized to purchase the shares at $23.34 each, the exercise price agreed upon in 2018, when Tesla’s board approved a long-term pay plan tied to performance milestones. With Tesla’s stock closing at $302.60 last Friday, the awarded shares amount to nearly $29 billion in current market value.
Musk’s compensation plan, originally valued at $56 billion, was invalidated in January 2024 by a Delaware court after a shareholder lawsuit. The judge ruled that shareholders were misled about the independence of Tesla’s board and compensation committee before approving the plan.
Nevertheless, the saga continued. In June 2024, shareholders voted again to reinstate the plan, only for it to be rejected once more by the court in December. Tesla has since appealed and formed a special committee to review the matter.
In a post on X (formerly Twitter), Tesla said the interim award recognizes Musk’s accomplishments at a time when the "AI talent war" is intensifying and Tesla stands at a crucial turning point. “Elon remains Tesla’s most valuable asset. Honoring our 2018 agreement is essential to retain and motivate him,” the company stated.
Analysts from Wedbush Securities noted that Musk's compensation has been a long-standing concern for shareholders. As of early trading Monday, Tesla shares were up 2.4%, reaching $309.90.
