Tesla Ties Musk with New $29 Billion Stock Award Amid Leadership Transition
Tesla has offered CEO Elon Musk a stock award worth $29 billion to ensure his continued leadership as the company pivots from its regular vehicle business to robotics and robotaxis. This move, amid declining sales and brand loyalty, aims to quell concerns about Musk's focus on Tesla.
Tesla has awarded CEO Elon Musk a significant stock compensation package valued at $29 billion. This initiative is intended to secure Musk's leadership as the company navigates through transformative changes, including a shift towards robotaxis and humanoid robotics. The move aims to uphold focus on Tesla amid declining sales.
The stock award, comprising 96 million new shares, serves as a preliminary payment to Musk. It follows a Delaware court's annulment of his 2018 pay package, which is currently under appeal. Tesla plans to introduce a longer-term CEO compensation strategy at its upcoming annual investor meeting on November 6.
By increasing Musk's control over Tesla — from 12.7% to over 15% — this award reaffirms his pivotal role in tackling challenges faced by the electric vehicle maker. Despite Intel findings of tumbling loyalty, partly due to Musk's political stances, the board remains committed to his leadership.
(With inputs from agencies.)
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