Tesla's board has approved an interim stock award for CEO Elon Musk valued at about $30 billion, aiming to keep him focused on the company as a legal dispute continues over...

Tesla's board has approved an interim stock award for CEO Elon Musk valued at about $30 billion, aiming to keep him focused on the company as a legal dispute continues over his 2018 pay package. The award grants Musk 96 million shares of restricted stock at a set exercise price of $23.34 per share, which is significantly lower than Tesla’s current stock price, making the total value of the award exceed $20 billion. These shares represent roughly 3% of Tesla's outstanding stock and would increase Musk’s ownership stake from around 13% to approximately 15%. Under the terms, Musk cannot sell, transfer, or dispose of these shares for five years.

The stock award is described as a "good faith" gesture while comprehensive CEO compensation plans remain under litigation and will be presented to shareholders for approval at Tesla’s annual meeting in November. Unlike Musk’s previous pay plans with performance targets, this new interim package requires Musk only to remain in a senior leadership role at Tesla for the next two years to vest the shares.

This move follows a Delaware Chancery Court ruling that voided Musk’s $50 billion pay plan from 2018, a decision Tesla is appealing. The board emphasized the importance of Musk’s leadership to retain key talent in what they described as an intensifying AI talent war, highlighting Musk's role in Tesla's critical position in AI, robotics, and related fields. Despite recent challenges for Tesla’s stock price, Musk remains the richest person globally with a fortune around $399 billion as of August 2025.

More repots on this  development noted that it is as a strategic step to maintain Musk’s engagement amidst ongoing legal and market pressures.

This news means Tesla granted Elon Musk a massive $30 billion stock award as an interim measure to keep him committed to leading the company amid an ongoing legal dispute over his 2018 pay package. The award requires Musk only to remain in a senior leadership role for two years, showing Tesla's strong intent to retain his leadership while the court case plays out.