Tesla Awards Elon Musk with Billion-Dollar Stock Bonus Amid Legal Disputes
Tesla has granted CEO Elon Musk 96 million shares, valued at $29 billion. Musk is currently appealing a court's voiding of his 2018 compensation package. The company is shifting focus towards AI and robotics, despite ongoing legal and strategic challenges surrounding its leadership and future direction.
On Monday, Tesla revealed in a filing that it has granted its CEO, Elon Musk, 96 million shares, which amounts to approximately $29 billion in value. According to the filing, Musk must pay Tesla $23.34 per share of restricted stock that vests, aligning with the exercise price per share of his 2018 CEO Award.
In a significant legal turn, a Delaware court in 2024 had nullified Musk's 2018 compensation scheme, originally valued at over $50 billion, citing procedural flaws and shareholder unfairness as reasons. Musk launched an appeal in March, arguing that the decision contained several legal missteps.
As Tesla navigates this complex situation, it also finds itself at a pivotal moment, with Musk redirecting focus from a promised affordable EV platform towards robotaxis and humanoid robots. This shift signifies Tesla's transition from purely an automaker to an AI and robotics innovator.
(With inputs from agencies.)
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