Tesla Grants Musk $29 Billion Stock Award

Tesla granted CEO Elon Musk a $29 billion share award to maintain his focus on transforming the company from electric car production to robotaxis and humanoid robots. The 96 million share “interim award” serves as a partial payment of the $50 billion 2018 compensation package which a Delaware court invalidated during the previous year.
Musk can obtain the award after two years in a top position at Tesla unless the 2018 deal regains its validity. The shares must remain in his possession for five years at the original price of $23.34 per share according to the terms of the original award.
The company faces multiple challenges including declining sales from its aging product line and rising EV competition and brand damage from Musk’s political endorsements including his backing of President Donald Trump. The customer loyalty of Tesla customers has experienced a significant decline according to S&P Global Mobility data since the previous summer.
The exercise of this award would increase Musk’s Tesla stock ownership to more than 15% from his current 12.7%. The company will present a long-term compensation plan to shareholders for approval during its annual meeting on November 6.