Tesla awards Elon Musk $1T4T29 billion in stock
Tesla approves $1T4T29 billion in stock for Musk, seeking to secure his tenure after a court veto of a previous compensation plan.
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Tesla has just granted its CEO, Elon Musk, a package of 96 million restricted shares valued at approximately 1TP4Q29 billion, the company confirmed in a recent regulatory filing.
The agreement, dubbed the "2025 CEO Interim Award," was approved by a special committee of the board of directors to retain Musk at the top of the company during its transformation into artificial intelligence, robotics, and robotaxis services.
Elon Musk: Legal background
However, in December 2024, a Delaware judge voided the 2018 compensation plan — originally valued at up to $1.4T.56 billion — arguing that Musk had negotiated with non-independent directors, compromising the integrity of the process. Musk appealed this decision in March 2025.
Strategic motive and investor reaction
The board justified the new package as an act of good faith to compensate Musk during the legal dispute and retain his leadership in critical future times for Tesla.
Furthermore, the decision aims to reassure investors and eliminate uncertainty about his continued tenure as CEO: he is expected to remain at the helm until at least 2027 or 2030, according to various reports.
Wedbush Securities analyst Dan Ives noted that the package removes a threat to the stock's value, as it was seen as key to ensuring Musk's continued presence at the company.
Key conditions and clauses
- Musk will pay $23.34 per share, equal to the price agreed in 2018.
- Shares only vest if you remain in an executive position for two years, and will be locked in for five years, except to cover taxes or the cost of purchase.
- To avoid duplication, should the court reinstate the 2018 package, this new agreement will be forfeited or returned.
The board justified the new package as an act of good faith to compensate Musk during the legal dispute and retain his leadership at critical times for Tesla.
Furthermore, the decision aims to reassure investors and eliminate uncertainty about his continued tenure as CEO: he is expected to remain at the helm until at least 2027 or 2030, according to various reports.
Wedbush Securities analyst Dan Ives noted that the package removes a threat to the stock's value, as it was seen as key to ensuring Musk's continued tenure at the company.
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