Tesla CEO Elon Musk Awarded $29 Billion in Stock Despite Legal Battles

2025-08-04 18:00:32.663

Tesla awarded CEO Elon Musk 96 million shares of restricted stock, valued at approximately $29 billion. This comes just six months after a Delaware judge ordered the company to revoke Musk's multibillion-dollar pay package, citing sham negotiations with non-independent directors. Musk must pay Tesla $23.34 per share to exercise the stock. The initial pay package, awarded in 2018, had a potential maximum value of $56 billion, fluctuating with Tesla's stock price. Musk appealed the judge's ruling, and Tesla formed a special committee to review his compensation. The board defended the new award, arguing Musk hasn't received meaningful compensation since 2017 and has delivered transformative growth. Analyst Dan Ives believes this award will secure Musk's position as CEO until at least 2030 and alleviate shareholder concerns. Tesla's stock has fallen 25% this year due to factors including Musk's affiliation with President Trump and increased competition. The company's recent quarterly profits plummeted, falling short of expectations. Shareholder pressure led Tesla to schedule an annual meeting in November. Despite the controversy, Tesla's stock rose following the announcement of the stock award.