Tesla (BDR:) approved a provisional stock package of about $ 30 billion for CEO Elon Musk, a gigantic payment designed to keep the billionaire focused on the automaker while dragging on the judicial dispute over his 2018 remuneration plan.
The new agreement includes 96 million shares of the company that will be granted if Musk remains in the position of CEO for another two years, the company said in a regulatory document on Monday. Restricted shares have a $ 23.34 year, equal to the 2018 remuneration package.
Tesla’s shares rose 2.9% pre-market in New York. Until Friday’s closure, the role accumulated 25% in the year, against 6% of S&P 500.
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The board highlighted the importance of retaining Musk, classifying the concession as a “good faith” payment and a first step to a broader remuneration plan, which will be submitted to the annual meeting of November 6.
“After all, an agreement is an agreement,” the board said to the shareholders.
The announcement comes after the previous package, valued at over $ 50 billion, was annulled by Delaware’s Chancellery Court after a lawsuit filed by shareholders. The decision is on appeal, and a special board committee has been looking for new ways to compensate for Musk since Tesla transferred its legal headquarters to Texas last year. The committee consists of Robyn Denholm (chairman of the board) and Kathleen Wilson-Thompson (Counselor).
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Since the legal dispute should not be resolved anytime soon, the council said it needed to act to retain musk “amid the increasingly intense war by AI talents and the decisive moment Tesla faces.”
The package requires Musk to remain continuously in a senior leadership position at Tesla during the period of acquisition of shares (two years) and keep the papers for five years from the date of concession. If the Delaware Court fully restores the 2018 performance package, Musk shall return or resign provisional actions.
“Simply put, there can be no double compensation,” the company said in the document.
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The board has stated that shareholders have already approved a significant package for Musk and that Tesla needs to retain talent – especially the CEO – as he expands his car business and energy to artificial and robotic intelligence.
“We believe this directly addresses one of the largest priorities of shareholders and the Council: energizing and focusing Elon at Tesla to boost the company in its next age, while we continue the legal battle to restore the 2018 performance package.”
The proposal reinforces Musk’s control over Tesla and indicates that he does not intend to leave the position of CEO in the short term. Musk has been in charge since 2008 and said, in an interview with Bloomberg In May, which intends to continue at the post for at least five more years.
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Despite the multiple responsibilities of Musk in other companies, the council maintains its support. In addition to heading Xai, Spacex, Neuralink, x Corp. And The Boring Company, Musk also became strongly involved in politics in 2025, financing President Donald Trump’s reelection campaign and leading the Doge initiative to reformulate the federal government – something that generated negative reactions to Tesla.
“Although we recognize that Elon’s enterprises and interests are broad, we believe this package will encourage him to stay in Tesla. Losing Elon would mean not only giving up his talent, but also a leader who attracts and retains talents in the company.”
The decision received initial praise from some investors and analysts. For Dan Ives, from Wedbush, the “removes a shadow on actions” and probably ensures that Musk remains CEO for years.
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“Musk remains Tesla’s biggest asset, and this issue of compensation has always been a constant concern of shareholders,” he said.
©2025 Bloomberg L.P.
