Elon Musk Acquired $29 Billion to Remain Engaged with Tesla | Carscoops

      The automaker believes this will keep Elon focused on his role at Tesla.

       6 hours ago

      

      

      

      

      

      

      

      

      

      

      

       by Stephen Rivers

      

      

      

      

      

      

      

      Tesla granted Musk 96 million shares valued at $29 billion as interim compensation.

      This agreement ensures the CEO will remain with Tesla for at least the next two years.

      If the courts restore the 2018 package, Musk cannot receive both.

      Earlier this year, two Tesla board members formed a special committee dedicated to one goal: determine how to “retain and incentivize Elon.” After months of discussion, the answer has become clear. It wasn't a creative brainstorming session or an ambitious new plan, but rather $29 billion worth of stock. When it comes to keeping Elon Musk engaged, it appears that money speaks the loudest.

      More: Elon Musk Somehow Managed To Make Everyone Hate Electric Cars

      Before we proceed, it's important to remember that in 2018, a Delaware court rejected a $50 billion compensation package for CEO Elon Musk, citing issues in the board's approval process and its unfairness to investors. Musk has appealed this decision, but in the meantime, Tesla and its board have approved a new $29 billion compensation package.

      What's Included in the Package?

      

      

      The award comprises 96 million shares of Tesla, granted to Elon as a ‘good faith’ payment. The committee is also developing a long-term payment plan for the CEO, which will be presented to shareholders for a vote on November 6. Regardless of the outcome, this interim pay package guarantees that Musk will remain part of Tesla’s leadership for at least two years, with the stipulation that leaving before that time would result in the loss of the package.

      As Bloomberg notes, Musk has already expressed his commitment to staying with Tesla for a minimum of five more years. According to the board, this decision is primarily aimed at fulfilling Elon’s personal wish for increased voting rights.

      In a post on X, the company stated: “This interim award is structured to gradually enhance his voting rights upon grant, which he has consistently told us—and shareholders have confirmed—is essential for incentivizing him to remain focused on the critical work we are accomplishing at Tesla.”

      

      A Letter to Our Shareholders on the 2025 CEO Interim Award

      Dear Fellow Tesla Shareholders,

      Today we announce a significant first step in compensating Elon Musk for his exceptional contributions at Tesla. As you know, Elon has not received significant compensation for eight years since…— Tesla (@Tesla) August 4, 2025

      

      No Overlap With the 2018 Package

      

      

      The Tesla board has made it abundantly clear that Musk will not receive this pay package alongside the 2018 one if the courts overturn their ruling.

      “If the Delaware courts fully reinstate the 2018 CEO Performance Award, this interim award will be forfeited or returned, or a portion of the 2018 CEO Performance Award will be forfeited,” the letter to shareholders stated. “In simple terms, there cannot be any ‘double dip.’ Elon will not be able to retain this new award in addition to the options he will get under the 2018 CEO Performance Award if the courts decide in our favor.”

      As of now, Musk has not publicly commented on the package. However, given his usual online activity, it's quite possible he is reserving his thoughts for a meme, a reference about Mars, or a reply regarding Dogecoin. Subtlety has never been his strong suit.