New $29B Award for Musk: Tesla Board Hopes to Recapture CEO’s Focus

Tesla’s board of directors has approved a new $29 billion stock award for CEO Elon Musk, a move they hope will refocus his attention on the company. The decision comes after a US court invalidated his previous $56 billion pay package from 2018. The award, recommended by a special committee, is a “good faith” payment that allows Musk to purchase 96 million shares at the original 2018 price for $2 billion.
In a letter to shareholders, board members Robyn Denholm and Kathleen Wilson-Thompson acknowledged the public’s concerns about Musk’s divided attention due to his many other ventures, like SpaceX and X. They stated that the new award is a “critical first step” toward “keeping Elon’s energies focused on Tesla” and securing his long-term commitment.
Musk’s political activities have reportedly had a negative impact on the Tesla brand and customer loyalty. A survey from S&P Global Mobility showed a dramatic decline in the percentage of Tesla owners who bought another Tesla, a drop an analyst called “unprecedented.” This data suggests that Musk’s public image and political affiliations are directly affecting the company’s sales.
The new shares will increase Musk’s ownership stake from 13% to about 15%, giving him more voting power. Musk has long argued that more control is necessary to protect the company from activist shareholders as it pivots its strategy toward AI and robotics. The board’s letter confirms that the award is designed to gradually increase his influence, ensuring his leadership. The new compensation package will be forfeited if the original 2018 deal is reinstated.