Mon, 04 Aug 2025

Mon, 04 Aug 2025 Tesla awards boss Elon Musk $29bn in shares

Tesla's board hopes to retain Elon Musk amid a fight for tech talent in the sector.
Tesla has awarded its CEO Elon Musk with $29 billion worth of shares in an effort to keep him at the company. This move comes after a US court struck down his 2018 pay package, which was worth over $50 billion. The new share award is designed to incentivize Musk to remain with Tesla as the "war for AI talent" intensifies. The award will also boost Musk's voting power on the board and should motivate him to stay at the company, according to Tesla. The billionaire has a proven track record of building revolutionary and profitable businesses, the company said. However, if the Delaware court reinstates Musk's original pay deal worth $56 billion - which would be the largest in US corporate history - he would need to forfeit or return the new share award. Tesla's move is seen as necessary to retain its biggest asset: Musk. Analyst Dan Ives believes that keeping Musk at the firm is crucial for Tesla's success, especially as it pivots towards AI and robotics.
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