Tesla’s board has granted CEO Elon Musk 96 million new shares, valued at around US $29 billion, in an "interim award" designed to retain him amid Plaintiff litigation over a previous compensation plan.
The award will vest over two years, contingent on Musk remaining in a key executive role—such as CEO or executive chair—through to August 2027.
Shares must be held for five years (until August 2027 or later) and will be forfeited or offset if the 2018 pay package, previously voided by a Delaware court, is reinstated on appeal.
Musk currently holds roughly a 13 % stake in Tesla. The new award is expected to increase his ownership to approximately 15–16 %, enhancing his voting power within the company.
A Delaware court voided Musk’s original 2018 compensation plan, valued at over $50–56 billion, citing flawed approval procedures and conflicts of interest among board members. Tesla and Musk are currently appealing the decision in the Delaware Supreme Court.
Tesla’s board explained that the interim award was a good faith measure to retain Musk during a strategic shift toward artificial intelligence, robotics, and autonomous technologies, beyond its traditional automotive business.
Tesla stock rose by around 2–3 % immediately following the announcement, reflecting investor response to reduced executive uncertainty