**Elon Musk Receives $29 Billion Stock Award from Tesla to Secure Leadership**
Tesla has awarded its long-term CEO, Elon Musk, an interim stock grant of 96 million shares, valued at around $29 billion, as part of a new compensation agreement designed to retain the billionaire at the company’s helm. The electric vehicle manufacturer acknowledged Musk’s contribution, stating he has provided “extraordinary value” to shareholders, despite not receiving any compensation since the 2018 pay package was invalidated by a Delaware court last year.
Musk will be eligible to claim this stock award if he remains CEO of Tesla for an additional two years and if the court reinstates the 2018 compensation package. The CEO is required to hold these shares for five years and can purchase them at a price of $23.34 per share, which matches the exercise price of the previous award.
In addition, Tesla announced plans to present a long-term CEO compensation strategy for shareholder approval at its annual meeting on November 6. The company described the stock grant as a “first step, good faith” effort to incentivize Musk to continue leading Tesla, even as he balances responsibilities with his other ventures, including xAI, SpaceX, and Neuralink.
In a letter to shareholders, Tesla emphasized the importance of rewarding Musk for his ongoing contributions to the company. The $29 billion package also addresses speculation regarding the board’s patience with Musk, especially following a challenging period for the company during his extended time in Washington. This move not only reinforces Musk’s control over Tesla but also signals that the board still views him as the most qualified individual to lead the company into the future.
Tesla expressed confidence that this award will motivate Musk to remain committed to the company, despite his numerous business interests and obligations.
**FAQ**
*What is the significance of Elon Musk’s new stock award from Tesla?*
The stock award is significant as it aims to retain Musk as CEO while recognizing his contributions to Tesla, especially after a court ruling affected his previous compensation package. It also reflects the board’s confidence in his leadership amidst various challenges.
