Tesla has granted Elon Musk $29 billion in company shares amidst an escalating battle for AI talent. This move aims to retain Musk as CEO, particularly as Tesla shifts towards AI and robotics. The compensation package includes 96 million shares. It also seeks to solidify Musk's voting power within the company.
The decision follows a Delaware court ruling that nullified Musk's previous $56 billion compensation plan. Tesla's board insists that retaining Musk is vital, citing his leadership and technical expertise. They also highlight his track record in building successful businesses.
The award requires Musk to serve in a senior leadership role at Tesla continuously during the two-year vesting term and hold the shares for five years from the grant date. If the Delaware courts fully reinstate the 2018 performance award, Musk will forfeit or return the interim award.
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