Tesla has granted CEO Elon Musk a stock package valued at approximately $29 billion, further solidifying his leadership role in the company amid ongoing controversies. The company awarded Musk 96 million restricted shares, recognizing his contributions to Tesla’s substantial growth, despite recent setbacks related to political involvement, declining sales, and a 25% drop in stock value this year.
This latest stock grant follows a legal battle over Musk’s previous compensation package from 2018, which was deemed invalid by a Delaware court last year. Although Tesla is appealing the decision, the new award is seen as a strategic move to retain Musk and ensure his focus on Tesla’s future while also leading other ventures like SpaceX and xAI.
In a regulatory filing, Tesla justified the decision by highlighting the company’s market value increase of $735 billion since Musk became CEO. However, Tesla is under pressure, with profits dropping sharply and competition from both U.S. and Chinese automakers growing. Analysts are closely monitoring Musk’s political involvements, particularly his alignment with former President Donald Trump, which has raised concerns about his divided attention.
The company stated that Musk would need to pay $23.34 per share to unlock the restricted stock, consistent with the 2018 package’s exercise price. Despite the controversies surrounding Musk’s compensation, the new stock package aims to stabilize his leadership at Tesla, which faces heightened uncertainty as it navigates its competitive landscape.
Tesla’s stock rose by nearly 2% during midday trading on Monday, signaling some investor optimism following the announcement.
Bd-pratidin English/ Jisan
