Tesla‘s board has awarded CEO Elon Musk an interim pay package of 96 million shares, based on a filing out Monday, which can be value about $29 billion.
The corporate said in the filing that Musk’s recent package will include shares that vest in two years so long as he continues as CEO or in one other key executive position. The award will probably be forfeited if the legal battle over Musk’s 2018 compensation ends with him with the ability to exercise shares from that package, which was valued at $56 billion when it vested.
Tesla stock climbed greater than 2% on Monday.
In January, Delaware Chancellor Kathaleen McCormick upheld her ruling in Tornetta v. Musk, which found that Musk’s 2018 CEO compensation plan was improperly granted to him. The court determined, amongst other things, that Tesla’s board withheld key information from shareholders before asking them to approve the 2018 plan.
After the ruling, Musk began an anti-Delaware campaign and moved Tesla’s site of incorporation to Texas. Tesla also appealed the Tornetta decision, and the case is now before the Delaware state Supreme Court.
Musk owns roughly 13% of Tesla’s outstanding shares, and his level of control over the electrical vehicle maker has been a daily topic online and with shareholders.
In January 2024, Musk threatened to develop artificial intelligence and robotics products outside of Tesla unless he gained greater control over the corporate. He said in a post on X on the time that he’s “uncomfortable growing Tesla to be a frontrunner in AI & robotics without having ~25% voting control.”
Public records in Nevada show that Musk had already formed a business called xAI in March 2023, without Tesla disclosing the corporate’s existence to shareholders. The AI startup, now the parent of X, is developing AI products and data infrastructure and dealing with Tesla, integrating its Grok chatbot into the corporate’s EVs.
Musk’s recent interim CEO pay plan was approved by a “special committee” of the Tesla board, which included board chair Robyn Denholm and director Kathleen Wilson-Thompson, based on Tesla’s financial disclosures. The plan doesn’t limit Musk’s ability to begin recent businesses or proceed along with his political work.
Last yr, Musk took time away from Tesla to assist reelect President Donald Trump, after which worked for the Trump administration as a special government worker leading DOGE, an initiative to slash federal agencies.
Musk’s work with the Trump administration has contributed to a consumer backlash against Tesla, and negatively weighed on its EV sales and brand status within the U.S. and Europe. Subsequent to a public spat with Trump, Musk said last month that he’s formed a brand new political party.
In July, Tesla issued a weak earnings report, with sales falling for a second straight quarter and automotive revenue dropping 16%. On a call with analysts, Musk acknowledged the looming lack of EV tax credits as a challenge for the corporate.
“We probably could have just a few rough quarters. I’m not saying that we are going to, but we could,” Musk said.
Tesla plans to carry its next annual shareholder meeting in November.
WATCH: Musk boasts about Tesla’s robotaxi plans
