Tesla board awards Musk $29bn in shares
The board of the world’s most valuable carmaker has approved the award of shares to chief executive Elon Musk worth a staggering $29bn (£21.7bn) in efforts to prevent the billionaire from leaving the firm.
The new award by Tesla, which amounts to 96 million new shares, comes as part of a new pay deal, after Musk threatened to leave the electric vehicle maker if he was not given more stock.
It should also boost Musk’s voting power on Tesla’s board.
Tesla’s board wrote on X, which is owned by Musk that “It is imperative to retain and motivate our extraordinary talent, beginning with Elon.”
It added, “We are confident this award will incentivise Elon to remain at Tesla.”
Seven year battle
The move comes after a seven year legal battle between Tesla and Musk, over a previous $56bn award for the chief executive, the largest in US history.
The package was struck down by a Delaware court in 2024, who ruled it was excessive and “unfair to shareholders” causing Musk to since repeatedly threaten to leave the company.
The addition of 96m shares will raise Musk’s holdings in the company from 13 per cent to approximately 16 per cent.
Tesla’s share price increased 2.58 per cent in pre-market trading to $309.38 (£232.03). The stock remains down by around a fifth since the start of the year.
Uncertain future
Tesla’s board is fighting to resolve the uncertainty around Musk’s future with the company, amid declining sales and increasing pressure from the crumbling relationship between the billionaire and US President, Donald Trump.
The two men have thrown insults against each other on social media since the introduction of Trump’s big beautiful bill and his implementation of anti EV-policies.
Musk promised to shift his attention back to Tesla following the sharp fall of car sales in Europe and other markers during his time working for the Trump administration in the Department of Government Efficiency.
Tesla is now focused on the roll out of a new cheaper model to boost sales and challenge the rise in competition in the sector, in particular from China.