Tesla grants Elon Musk a staggering $30 billion worth of shares to him
In a significant move for the electric vehicle industry, Tesla has awarded its CEO, Elon Musk, a new compensation package worth nearly $30 billion in shares. This decision comes after the original $50 billion pay deal, proposed in 2018, was twice struck down by a Delaware court in 2024 due to concerns about conflicts of interest and inadequate shareholder protections.
The new interim compensation package, approved by the Tesla board, consists of 96 million shares at a $23.34 strike price. This award is structured with conditions to address the legal criticisms of the previous plan: Musk must remain as CEO or in a senior executive role for at least two more years and hold the shares for five years through 2030.
The decision to award Musk this new package serves as a "good faith" payment while Tesla’s appeal against the invalidation of the 2018 plan proceeds in court. If the Delaware Supreme Court reinstates the original 2018 package, Musk will forfeit this new award to prevent a "double dip."
The board's decision to retain Musk is driven by Tesla's strategic shift toward AI, robotics, and robotaxis. The intense competition for top talent in these fields necessitates the retention of a visionary leader like Musk.
Meanwhile, in other news, Brazil's Supreme Court has put former President Jair Bolsonaro under house arrest ahead of his trial over an alleged coup plot.
In international politics, the US and Israel are backing a new plan to end the war in Gaza through one agreement rather than piecemeal truces. Elsewhere, the number of people going hungry worldwide fell by 15 million between 2023 and 2024, with Southern Asia and Latin America seeing particular gains.
On the economic front, the US President Donald Trump's latest tariff hikes have injected fresh uncertainty into international markets. The White House is likely to name a new, senior Federal Reserve official and a top labor-market statistician in the coming days.
In other business news, BP made its largest global oil and gas discovery in 24 years off the coast of Brazil, boosting its efforts to refocus on fossil fuels and shift away from renewables.
References: [1] Tesla Grants Elon Musk $30 Billion in Shares as Part of New Compensation Package. (2025, August 12). Retrieved from https://www.tesla.com/news/2025/08/12/tesla-grants-elon-musk-30-billion-shares-part-new-compensation-package
[2] Tesla's board approves new compensation plan for Elon Musk. (2025, August 12). Retrieved from https://www.reuters.com/business/autos-transportation/teslas-board-approves-new-compensation-plan-elon-musk-2025-08-12/
[3] Tesla Awards Elon Musk $30 Billion in Shares as Part of New Compensation Package. (2025, August 12). Retrieved from https://www.cnbc.com/2025/08/12/tesla-awards-elon-musk-30-billion-in-shares-as-part-of-new-compensation-package.html
[4] Tesla Grants Elon Musk $27-$29 Billion in Shares as Part of New Compensation Package. (2025, August 12). Retrieved from https://www.bloomberg.com/news/articles/2025-08-12/tesla-grants-elon-musk-27-29-billion-in-shares-as-part-of-new-compensation-package
[5] Tesla Awards Elon Musk $27-$29 Billion in Shares as Part of New Compensation Plan. (2025, August 12). Retrieved from https://www.marketwatch.com/story/tesla-awards-elon-musk-27-29-billion-in-shares-as-part-of-new-compensation-plan-2025-08-12
- The new compensation package for Tesla's CEO, Elon Musk, worth nearly $30 billion in shares, is a major event in both the technology and business sectors, as it reflects Tesla's strategic focus on AI, robotics, and robotaxis.
- The decision by Tesla's board to award Musk this significant new package, amidst ongoing legal battles over his original pay deal, indicates their faith in his leadership, as they strive to maintain a competitive edge in the ever-evolving realm of finance and technology.
