Jackpot For Elon Musk! Tesla Board Approves Rs 2.5 Lakh Crore Stock Award, Pay Vote In November
Tesla has granted Elon Musk a $30 billion (Rs 2.5 lakh crore) interim stock award, mirroring his voided 2018 package, to retain him as CEO. A new long-term compensation plan will be put to shareholder vote in November. The move follows a Delaware court’s rejection of his earlier $50 billion pay deal.
- Republic Business
- 2 min read
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In a move signaling renewed commitment to its high-profile CEO, Tesla Inc. has granted Elon Musk an interim stock award valued at approximately $30 billion (Rs 2.5 lakh crore), while preparing a broader compensation package for shareholder approval later this year. The development was first reported by Bloomberg.
According to a regulatory filing on Monday, the electric carmaker has approved the issuance of 96 million restricted stock units to Musk. These will vest if he continues to serve as CEO for at least the next two years. Notably, the shares carry an exercise price of $23.34—matching the terms of the landmark 2018 pay package that was voided earlier this year.
Tesla’s board underscored the importance of retaining Musk’s leadership, calling the new grant a “good faith” gesture and reiterating that “a deal is a deal.” Following the announcement, Tesla shares rose 2.7% in premarket trading, touching $310.80 in New York.
The decision follows a Delaware Chancery Court ruling that invalidated Musk’s previous compensation deal—one that had been estimated to be worth more than $50 billion. That judgment, spurred by a shareholder lawsuit, is currently under appeal.
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In the meantime, a special board committee has been tasked with designing a fresh compensation framework, particularly in light of Tesla’s corporate relocation to Texas last year.
Musk, who has been CEO since 2008, recently told Bloomberg that he remains committed to leading Tesla for at least five more years. The interim stock award could serve as a bridge until the new long-term package is brought to a vote at Tesla’s annual meeting scheduled for November 6.
Despite juggling multiple ventures—ranging from SpaceX and Neuralink to xAI—Musk’s central role at Tesla continues to be viewed as critical. However, his political activities, including a reported pledge of financial support for Donald Trump’s reelection campaign and his efforts to influence federal governance, have drawn scrutiny and stirred debate within the investor community.