Money

Tesla Board Approves $29B Stock Award for Elon Musk

AUG 4 2025·Updated AUG 5 2025

Story

Above: Elon Musk at the Porte de Versailles exhibition center in Paris, on June 16, 2023. Image credit: Joel Saget/AFP/Getty Images

The Facts

Tesla's board of directors approved a stock award worth approximately $29 billion for CEO Elon Musk, granting him 96 million restricted shares under the company's long-term incentive plan on Monday.
Tesla
Fox 4 - Kansas City
Wsj
The award serves as an "interim" compensation package while Musk's original $56 billion pay package from 2018 remains tied up in Delaware court appeals, following a judge's ruling in January 2024.
FOX News
SEC.gov
Quartz
The shares will vest over two years if Musk remains in a senior executive role at Tesla through August 2027, with a five-year lockup period preventing sales until August 2030, except for tax payments.
The Hill
New York Post
Reuters
Tesla's special committee, consisting of Chairwoman Robyn Denholm and Board Member Kathleen Wilson-Thompson, unanimously approved the package, with Musk and his brother, Kimbal, recusing themselves from the process.
Business Insider
SEC.gov
The compensation package will be forfeited if Musk's original 2018 pay deal is reinstated by the courts, ensuring no "double dip" scenario, according to the company's regulatory filing.
Tesla
Quartz
Tesla's stock price rose approximately 3% in premarket trading following the announcement. The company's shares have declined 25% year-to-date amid ongoing sales challenges.
Business Insider
The New York Times

Sources Split

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The Spin

Narrative A

This compensation package represents a necessary strategic move to retain Tesla's most valuable asset during a critical transformation period. The intensifying AI talent war demands competitive compensation to keep visionary leadership focused on Tesla's pivot from traditional automaking to robotics and artificial intelligence. Without Musk's proven track record of revolutionary innovation across multiple industries, Tesla risks losing its competitive edge in the rapidly evolving tech landscape.

Tesla

Market Watch

Narrative B

The massive payout raises serious concerns about corporate governance and shareholder value, especially given Tesla's declining performance and Musk's divided attention across multiple ventures. It's unlikely that any executive deserves such extraordinary compensation when the company's core business struggles with falling sales and compressed margins. The board's decision appears to reward mediocre results while ignoring fundamental business challenges that require operational focus rather than financial incentives.