Tesla's Board Approves Interim Pay Package for Elon Musk, Ensuring He Remains CEO Until 2030

Tesla CEO Elon Musk remains the company's "big asset" according to Wedbush analyst Daniel Ives. The approval of his interim pay package, worth $29 billion, removes an overhang on the stock and ensures Musk remains CEO until 2030. Ives maintains a "Buy" rating on TSLA stock with a $500 price target, implying a 61.7% upside from current levels.

Tesla's board of directors has approved an interim pay package worth $29 billion for CEO Elon Musk, according to regulatory filings [1]. This significant award, which includes 96 million restricted shares, aims to retain Musk's leadership and ensure his focus on the company's future. The package comes after a series of legal challenges and court rulings that previously tied up Musk's compensation.

The new pay package, valued at approximately $29 billion, is structured to vest over the next two years, provided Musk remains in his role as CEO or a senior executive position. Additionally, Musk must hold the stock until 2030 to fully realize the award. This arrangement gives Musk a built-in incentive to stay with Tesla, as his ownership stake will increase from around 13% to 15% [1].

The approval of this interim pay package follows a Delaware judge's ruling that rescinded Musk's previous mega-grant, which was valued at $56 billion. The Tesla board has since moved the company's incorporation from Delaware to Texas, where the legal threshold for challenging Musk's pay is set at 3% of the company's stock, a barrier valued at more than $3 billion [1]. This move is seen as a strategic effort to insulate Musk's compensation from future legal challenges.

Wedbush analyst Daniel Ives has maintained a "Buy" rating on Tesla (TSLA) stock with a $500 price target, implying a 61.7% upside from current levels. Ives believes that Musk's stock award may alleviate some shareholder concerns and provide a boost to the stock price [2]. The analyst's optimism is based on the assumption that the new compensation package will help secure Musk's long-term commitment to Tesla and its ambitious goals in AI, robotics, and autonomous vehicles.

The approval of Musk's pay package has sparked mixed reactions among investors. While some Tesla shareholders support the move, others have expressed concern over the substantial amount of compensation, particularly given the company's recent stock performance and Musk's political activities [1]. Critics argue that the board is prioritizing Musk's interests over those of the shareholders, despite the company's recent struggles.

In conclusion, Tesla's approval of Elon Musk's $29 billion pay package is a significant development that could have implications for the company's stock price and future performance. The new compensation structure is designed to retain Musk's leadership and ensure his continued focus on Tesla's strategic goals. As the company navigates its legal and regulatory challenges, investors will be closely watching to see how this pay package impacts Tesla's stock and overall financial health.

References:
[1] https://fortune.com/2025/08/04/elon-musk-pay-package-tesla-compensation/
[2] https://www.lbc.co.uk/business/tesla-elon-musk-29billion-dollars/