Tesla’s $29B Award to Musk: What It Means for the Company’s Future

Tesla has approved a massive $29 billion share award for its CEO, Elon Musk, reinforcing his leadership as the company enters a critical new phase focused on artificial intelligence, autonomous vehicles, and robotics.

The new package comes after a Delaware court invalidated Musk’s previous $50 billion compensation plan from 2018, prompting Tesla’s board to act quickly to retain what it calls its “most important asset.”

Under the new agreement, Musk can access the shares only if he remains in a top leadership role for at least two more years and holds the stock for five. The award allows him to buy the shares at a fixed price, the same as his original 2018 deal.

Tesla has framed the move as a “good faith” payment, meant to show confidence in Musk’s vision for the company’s future. A longer-term pay plan will be put to a shareholder vote in November.

With Tesla shifting from its core electric vehicle business toward robotaxis and humanoid robots, the board believes Musk’s leadership is vital for the transition.