Kristina Roberts
Tesla, one of the most well-known electric car companies in the U.S., has agreed to give a massive share award to its CEO, Elon Musk. This new deal is worth around $29 billion and is part of Tesla’s plan to make sure Musk stays with the company during a very important time. Tesla is now trying to move from just making electric cars to building robotaxis and even humanoid robots. To do this, they believe they need Musk to lead the way.
The company has granted Musk 96 million new shares as a part of this deal. These shares are being seen as a small start to something bigger. Tesla called this an “interim award,” which means it’s like a step toward something more. They are trying to honor a much larger pay package that was promised to Musk back in 2018. That older pay package was worth more than $50 billion. However, a court in Delaware canceled that 2018 deal last year, saying it wasn’t fair. The new share award will only become final if a court does not bring back the old 2018 package and if Musk stays in a top job at Tesla for the next two years.
Elon Musk will also have to wait five years before he can sell these shares. He must also buy the shares for $23.34 each, which is the same price as the older 2018 deal. This shows that Tesla is trying to keep the conditions fair while making sure Musk stays committed. The company is also planning to let investors vote on a longer-term pay plan for Musk in its upcoming annual meeting on November 6. This future vote will help decide how Musk will be paid if he continues to lead the company for many more years.
This whole move is meant to keep Elon Musk fully focused on Tesla’s future. Musk is not just the CEO—he is also the face of the brand. He is the person behind Tesla’s big plans to move toward driverless robotaxis and smart robots that can help in everyday life. Tesla knows that without Musk, it might be hard to move in this new direction.
In recent times, some people were starting to wonder if Tesla’s board of directors was growing tired of Musk’s behavior. There were problems in the company, and Musk had also been getting very involved in U.S. politics. Some thought that this might hurt Tesla’s image. But by approving this new share deal, Tesla’s board has made it clear—they still trust Musk and believe he is the right person to guide Tesla through its current challenges.
However, not everything is going smoothly for Tesla. The company’s car sales have been going down lately. One big reason is that the cars are getting older, and other companies are now making better and cheaper electric vehicles. Also, Musk’s strong political opinions, especially his support for former U.S. President Donald Trump, have made some customers unhappy. A report from S&P Global Mobility, which was shared with Reuters, showed that Tesla’s brand loyalty has dropped a lot since Musk made his political stance public.
Some people also feel that Musk is no longer giving enough attention to Tesla. He has started other companies, like his new artificial intelligence startup called xAI. This has made investors worried. They think he might not be as focused on Tesla as he used to be. Musk even said that he might leave the company unless he is given more control over it. This has added more pressure on Tesla’s board to make sure he stays.
By giving Musk this new pay deal, Tesla is trying to show that they are willing to meet his needs and keep him leading the company. They are also trying to calm investors and fans who were unsure about Musk’s future with Tesla. The board hopes that this new deal will remove any doubts and keep everyone focused on Tesla’s next steps.
Even though some people are critical of giving such a huge reward to one person, others believe it is a smart move. Musk has helped build Tesla into the giant company it is today. He brought big ideas and made electric cars cool and popular. Now, Tesla is hoping he can do the same with robotaxis and humanoid robots.
Still, the path forward will not be easy. Tesla will have to fight off tough competition, come up with fresh ideas, and make sure customers continue to trust them. The company also has to deal with the fact that many people no longer feel as connected to the brand because of Musk’s actions outside of Tesla.
At the same time, Tesla’s stock price went up by 2% after the news of the new share award was shared. This shows that some investors are feeling more confident now that the question of Musk’s pay and future role is being handled. For them, this new deal removes a big uncertainty and gives Tesla a better chance of moving ahead with a clear plan.
In the end, Tesla’s decision to offer Elon Musk this massive $29 billion share package is about more than just money. It’s about keeping a strong leader during a very challenging and important time for the company. Tesla wants to go beyond making cars. They want to lead the future with smart machines, self-driving cabs, and human-like robots. And for that, they believe Elon Musk is still the one who can make it happen.
But the real question is—will this move be enough to bring Tesla back to its golden days? Will customers still trust the brand? Will Musk focus more on Tesla or continue exploring other ventures? Only time will tell.
