Tesla Approves $30 Billion Stock Grant for Elon Musk Amid Legal Battle

Tesla has approved a $30 billion stock option for CEO Elon Musk, consisting of 96 million shares, to keep him at the helm during a critical phase for the company. The deal underlines Musk's importance to Tesla, which has been struggling with declining electric vehicle sales and a falling stock price. The move is seen as a way to focus Musk's attention on the company and attract him for several more years as CEO.

Tesla has approved a $30 billion stock option for CEO Elon Musk, consisting of 96 million shares, to keep him at the helm during a critical phase for the company. The deal underlines Musk's importance to Tesla, which has been struggling with declining electric vehicle sales and a falling stock price. The move is seen as a way to focus Musk's attention on the company and attract him for several more years as CEO.

The compensation package, announced by the company on Monday, comes as Tesla undergoes a significant transformation, shifting its core focus from electric vehicles to cutting-edge innovations in artificial intelligence, robotics, and autonomous mobility through its robotaxi initiative [1]. Musk will receive the shares at a fixed price of $23.34 each, with Tesla's stock currently trading well above $300, underscoring the board's confidence in his long-term vision and leadership [1].

To claim this award, Musk must remain in a senior executive role at Tesla for a minimum of two more years, with the granted shares to be held for five years before they can be sold [1]. The arrangement is an "interim" solution to acknowledge Musk's contributions while legal efforts continue to reinstate the previously approved — but now-contested — $50 billion compensation plan from 2018 [1]. That plan was invalidated by a Delaware court and remains under appeal.

The timing of the new award is significant. Tesla has faced headwinds in recent months, including declining vehicle sales, intensified competition in the EV market, and public backlash tied to Musk's political endorsements [1]. Despite the turbulence, Tesla's board remains unwavering in its support of Musk, highlighting the new award as a recognition of both past achievements and future potential [1].

Looking ahead, Musk has reassured stakeholders that he plans to dedicate more time to Tesla. This comes amid growing concern from investors regarding his multiple ventures, including his AI startup xAI [3]. Tesla's evolving focus on AI-driven technologies and autonomous transport solutions demands strong leadership, and the board views Musk as the best person to lead this transformation [1].

Tesla's robotaxi service has already begun limited rollouts as part of its strategy to expand beyond slowing EV sales [1]. By locking in Musk with this substantial stock incentive, Tesla is signaling confidence in its CEO and its future beyond traditional car manufacturing.

References:
[1] https://www.thehansindia.com/technology/tech-news/elon-musk-secures-29-billion-tesla-stock-award-amid-strategic-shift-and-leadership-commitment-994134
[2] https://www.cnbc.com/2025/08/04/tesla-stock-musk-pay.html
[3] https://www.latimes.com/business/story/2025-08-04/tesla-awards-elon-musk-29-billion-in-stock-amid-compensation-battle