SAN FRANCISCO: Tesla’s board of directors has given the green light to a massive stock award package for CEO Elon Musk, approving the grant of 96 million shares valued at approximately $30 billion. The move follows Musk’s reported ultimatum that he might exit the company if not granted a larger stake.
The approved award forms part of a newly negotiated compensation plan aimed at retaining Musk’s leadership at the helm of the electric vehicle giant. The board’s decision comes amid concerns over Musk’s increasing focus on other ventures, including X (formerly Twitter), Neuralink, and SpaceX.
Insiders say the board believes the substantial stock package is justified given Musk’s pivotal role in Tesla’s meteoric growth over the last decade. The company has become one of the world’s most valuable automakers and a driving force in the global electric mobility revolution.
While the exact structure of the deal hasn’t been disclosed in full, the award appears to mirror Musk’s previous performance-based compensation model, which required Tesla to hit specific financial and market milestones. Shareholders are expected to weigh in on the plan in the coming months.
Critics, however, argue the move further concentrates power in Musk’s hands and raises questions about corporate governance and succession planning. Supporters see it as essential to securing Tesla’s long-term vision and innovation pipeline.
