Tesla Awards Elon Musk Millions of Shares Valued at $29 Billion

Tesla gave Elon Musk a stock grant of $29 billion on Monday as a reward for years of “transformative and unprecedented" growth despite a recent foray into right-wing politics that has hurt its sales, profits, and its stock price.

In giving its billionaire CEO 96 million in restricted shares, the electric car company noted that Musk hasn’t been paid in years because his 2018 compensation package has been rejected by a Delaware court. The award comes eight months after a judge revoked the 2018 pay package a second time. Tesla has appealed the ruling.

Tesla on Monday called the grant a “first step, good faith” way of retaining Musk and keeping him focused, citing his leadership of SpaceX, xAI, and other companies. Musk said recently that he needed more shares and control so he couldn’t be ousted by shareholder activists.

“Rewarding Elon for what he has done and continues to do for Tesla is the right thing to do,” the company said in a regulatory filing, citing an increase of $735 billion in Tesla’s value on the stock market since 2018.

Tesla shares have plunged 25% this year largely due to blowback over Musk's affiliation with President Donald Trump. But Tesla also faces intensifying competition from both the big Detroit automakers and from China.

“We believe this grant will now keep Musk as CEO of Tesla at least until 2030 and removes an overhang on the stock,” Wedbush analyst Dan Ives wrote in a client note. “Musk remains Tesla’s big asset and this comp issue has been a constant concern of shareholders once the Delaware soap opera began.”

Tesla's stock rose nearly 2% in midday trading.