Tesla Approves $30B Stock Award for Musk

Tesla Approves $30B Stock Award for Musk

The News

Tesla CEO Elon Musk was awarded an interim pay package of 96 million shares of the company over the weekend. The shares would be worth about $29 billion.

Tesla stock climbed about 2% Monday.

The company said in a filing Sunday that the pay package would vest in two years as long as Musk continued as CEO or in another key executive position.

The pay announcement comes following a weak earnings report from the EV maker in which Tesla missed on the top and bottom lines, with sales falling for a second straight quarter and automotive revenue dropping 16%.

Timeline

In January

In January, Chancellor Kathaleen McCormick upheld a prior ruling in the case, Tornetta v. Musk, that the compensation plan was improperly granted. Tesla shareholders approved the pay package in June 2024.

Reactions

Musk acknowledged the looming loss of EV tax credits on a call with analysts following the report.

“We probably could have a few rough quarters. I am not saying that we will, but we could,” Musk said.

What's Next

The company has another shareholder meeting in November.

More

The new award would be forfeited if the legal battle over his 2018 compensation ends with Musk being able to exercise the larger pay package, which was valued at $56 billion.

The case is now before the Delaware Supreme Court.

Musk’s 2018 pay package included a set of performance targets for the company, which were all achieved.

The judge called it “the largest potential compensation opportunity ever observed in public markets” in her January decision and said it was 33 times higher than the nearest comparison, which was Musk’s prior compensation package.

Colleges Condemn Students Mocking Kirk Assassination Anniversary

Charleston White Arrested Again on Florida Battery Charge

Border Patrol Rescues MS NOW Crew in Desert

Supreme Court Restores Missouri's Old House Map

Alaska Drops Felony Voter Charges Against Samoans

Trespasser Breaches Harris' Malibu Estate; No Arrest

Hegseth Pressed Downed Airmen Into 60 Minutes

Houthis Seize Mokha, Choking Saudi Oil Exports

Altman Rules Out OpenAI IPO This Year

Jury Acquits Lil Durk in Murder-for-Hire Case

Judge: Trump Broke Law Halving FEMA Staff

Maher Calls Democrats' Gaza Genocide Claim a Lie

Blizzard Revives StarCraft, Sends Diablo to Netflix

Trump's Queens Childhood Home Sells for $1.93M

Scientists Find New Virus in Tick Invading US

Britain Bans Settlement Imports; US States Threaten Payback

Prison Fire Kills 7 as Kurds Protest Killing

Kosovo Rallies for Ex-President Before Hague Verdict

Cruz Booed at GameDay Over College Sports Bill

Blast Hits Bulgarian Arms Plant Supplying Ukraine