Tesla Awards Musk 200 Billion-Dollar Stock Grant After Salary Dispute
Musk
PhoenixNet Technology News Beijing time August 4, according to Reuters, Tesla has awarded its CEO Elon Musk 9600 million shares of stock, valued at approximately $290 billion (approximately ¥2091 billion). This move aims to ensure that Musk continues to lead the company while his salary dispute with the court is resolved.
In 2024, a Delaware court ruled that Musk's 2018 compensation package of over $500 billion was invalid due to procedural defects in the approval process by Tesla's board of directors, which was deemed unfair to shareholders. Musk has appealed the decision, claiming that lower-court judges made numerous legal errors when they rejected this record-breaking compensation package.
Earlier this year, Tesla said that its board had formed a special committee to review certain compensation matters related to Musk, but did not provide further details.
According to a file released by the committee on Monday, it stated: "Although we recognize that Elon's commercial projects, interests, and other numerous affairs may occupy a significant amount of his time and energy ... but we believe this stock reward will motivate Elon to continue staying with Tesla."
The file also pointed out that this incentive scheme aims to gradually increase Musk's voting rights. Musk himself and Tesla shareholders have long believed that this is a key factor in keeping him focused on the company's mission.
The file added that if the Delaware court ultimately fully restores Musk's 2018 CEO performance compensation package, this temporary grant of shares will be revoked or offset to ensure there is no "double benefit" situation.
Additionally, these temporarily granted shares will only be allocated to Musk if he continues to serve as a key executive until 2027. At the same time, except for using them to pay taxes or purchase price, these shares will also have a five-year holding period. The file noted that Musk must pay $23.34 per share allocated to restricted stock, which is the same exercise price as his 2018 CEO compensation package.
Currently, Tesla is at a critical turning point, with its largest shareholder Musk (holding 13%) shifting focus from the promised affordable electric vehicle platform to autonomous ride-hailing and humanoid robots. This strategic shift is making Tesla increasingly like an AI and robotics company rather than just a car manufacturer.
As of the publication, Tesla's stock price has risen over 2% before trading.(Author / Xiaoyu)