Tesla approved a restricted stock award of 96 million shares valued at approximately $29 billion to retain Elon Musk as CEO. This decision comes amid a legal battle regarding Musk's previous $50 billion pay package, which a Delaware court voided, citing flaws and shareholder unfairness. Tesla is appealing this ruling. The board argues Musk's leadership is crucial as the company aims to lead in AI and robotics, despite ongoing challenges including declining stock value and protests linked to Musk's political actions.
Tesla approved a restricted stock award of 96 million shares, worth about $29 billion, to incentivize the controversial billionaire to remain at the head of the company during a protracted legal battle over his original pay package.
Last year, a Delaware court voided Musk's pay package, valued at more than $50 billion, arguing that the deal was flawed and unfair to shareholders and that Musk held undue influence over its composition.
Tesla's board created a new stock grant to retain Musk, asserting that Tesla is nearing a leadership position in AI and robotics, requiring his steady hand.
Musk’s support for President Trump and involvement in government reforms have contributed to a nationwide protest movement and a significant drop in Tesla's sales this year.
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