Tesla Gives Elon Musk $29 Billion in Shares to Keep Him as Boss
Tesla has approved a huge reward for its CEO Elon Musk — a stock package worth $29 billion. The company will give Musk 96 million shares, but only if he stays as Tesla’s top leader for at least two more years.
This reward is called the 2025 CEO Award and is meant to replace his old 2018 pay plan, which is now stuck in a court case. If that old plan comes back, this new one will be cancelled — Musk can’t get both.
To get these shares, Musk will also need to pay $23.34 per share, just like the price in 2018. Plus, he can’t sell the shares for five years after getting them.
Tesla’s board said this deal is important to keep Musk focused on Tesla’s big goals — like electric cars, AI, and robotics. Two independent board members suggested the plan, and Musk didn’t vote on it to avoid any conflict.
Investors liked the news. After the announcement, Tesla’s stock price went up by 2%. Many believe this move removes any doubt about Musk staying with Tesla and leading its future plans.
Impact:
Musk might stay focused on Tesla’s future, especially in tech and AI. The stock reward could calm investors, but some people may still question such a big payout.