In a bold (and eyebrow-raising) move, Tesla is proposing a jaw-dropping $29 billion stock award to keep Elon Musk at the helm — even as the company navigates one of the most challenging chapters in its history.
 |
| Tesla Wants to Pay Elon Musk $29 Billion to Stay CEO — Here's Why It Matters |
The electric vehicle giant has approved a restricted stock grant of 96 million shares to “incentivize” Musk, amid an ongoing legal showdown over his previous, now-voided compensation plan.
A $50 Billion Pay Package That Didn’t Stick
Last year, a Delaware court struck down Musk’s original pay deal — worth over $50 billion — ruling that the arrangement was unfair to shareholders and overly influenced by Musk himself. Even though shareholders voted twice in favor of it, the judge stood firm. Now, Tesla is appealing the decision to the Delaware Supreme Court.
In the meantime, they’ve got a new plan.
Tesla's Pitch: AI, Robots & Musk’s Vision
According to Tesla, the company is on the brink of a revolution — not just in electric vehicles, but in artificial intelligence and robotics. And for that, they say, they need Elon Musk steering the ship.
But here’s the twist: Tesla’s current situation is shaky.
Musk’s increasingly public alignment with Donald Trump and his involvement in controversial government reform efforts have sparked nationwide protests. Sales are down, and the stock has taken a 20% dive so far this year.
The Board’s Message: Elon Is Still Essential
Despite the turbulence, Tesla’s board is doubling down. Earlier this year, it created a special compensation committee, consisting of board chair Robyn Denholm and director Kathleen Wilson-Thompson, to explore new ways to reward Musk — who, they claim, “hasn’t received meaningful compensation in eight years.”
In a letter to shareholders, they wrote:
“Yes, Elon’s business interests are wide-ranging and time-consuming... but we believe this new award will motivate him to stay focused on Tesla’s future, deliver value to shareholders, and attract top-tier talent to the company.”
The deal comes with a catch: if Musk’s 2018 pay package is reinstated by the courts, the new stock grant would be forfeited or offset — avoiding any “double dipping.” Musk would also commit to staying on as CEO through 2027. The final decision will rest with shareholders at the November 6th annual meeting.
Tesla’s Struggles: From Star to Stagnation?
After years of explosive growth, Tesla is facing a harsh reality check. As Musk dives deeper into politics and ambitious side projects (think humanoid robots and self-driving tech), investors are growing uneasy.
The company recently launched its first robotaxi service in Austin, Texas — a big step, but one that fell short of Musk’s bold promises. Meanwhile, the Cybertruck, Tesla’s only new product since 2020, has been met with mixed reviews and underwhelming demand. Add rising competition from Chinese automakers into the mix, and Tesla’s momentum looks anything but guaranteed.
Musk Wants More Control
Even as Tesla’s largest shareholder — owning around 13% of the company — Musk isn’t satisfied. He wants more voting power to ensure Tesla sticks to his vision.
“I worry that I don’t have enough control,” Musk said during a recent earnings call. “I could be pushed out by activist shareholders — after building a literal army of humanoid robots. I’ve said before, I want enough control to steer Tesla in the right direction, but not so much that I can’t be fired if I go crazy.”
The Bottom Line
Tesla’s $29 billion proposal isn’t just about keeping Musk around — it’s a high-stakes gamble on the future of the company. With growing competition, political controversy, and missed milestones, shareholders now face a crucial decision: double down on Elon, or begin planning for life after him?