Key points
- Musk must stay two years to claim shares
- Concerns rise over Musk’s politics and priorities
- Shareholders to vote on long-term package
ISLAMABAD: Tesla has granted Elon Musk a new share award worth $29 billion as it pivots from electric vehicles to robotaxis and humanoid robots. The move aims to secure Musk’s leadership despite declining sales, rising competition, and concerns over his political involvement and focus on other ventures.
The company called the 96 million-share “interim award” a “good faith” gesture, partially honouring a $50 billion compensation plan from 2018 that was struck down by a Delaware court, according to Reuters.
Tesla grants Musk $29 billion in shares as he appeals prior compensation ruling
➡️ https://t.co/x7LMqpX5F6 pic.twitter.com/WOnDFDZcn9— FRANCE 24 English (@France24_en) August 4, 2025
Musk can access the award if he stays in a top role for two more years and the court does not reinstate the original plan. He must also hold the shares for five years, buying them at the original $23.34 price.
Tesla will put a broader CEO pay plan to shareholder vote on 6 November.
AI-driven ventures
The board’s decision signals continued trust in Musk’s leadership as Tesla transitions away from cars to focus on AI-driven ventures. Despite recent controversies, including his political endorsements and time spent on other projects like AI firm xAI, the board believes Musk is essential to Tesla’s future.
Brand loyalty has dropped sharply, especially since Musk endorsed Donald Trump last summer, according to S&P Global Mobility data.
Critics question whether Musk can remain committed to Tesla amid his other business interests. Musk has even suggested he might leave without greater control over the company.
Undermining court’s ruling
The new stock grant will raise his stake from 12.7 per cent to over 15 per cent. Tesla said it will not count the award as an expense unless it believes the performance conditions will likely be met. Last year, a package similar to the 2018 plan was estimated to cost over $25 billion.
Critics argue the board is undermining the Delaware court’s ruling. “This is simply a repackaged version of what was done years ago,” said Charles Elson of the University of Delaware. “You don’t have to incentivise him to stay. If he leaves, he throws away 13 per cent of the company.”
Despite losing 25 per cent of its value this year, Tesla shares rose 2 per cent after the announcement. “This stock grant will bind Musk to Tesla for the next two years,” said investor Shawn Campbell.
