Tesla awards Musk $29 billion in shares with prior pay package in limbo

In a significant development over the weekend, Tesla's CEO Elon Musk has been granted an interim compensation package consisting of 96 million shares of the electric vehicle company, valued at approximately $29 billion. This news comes as Tesla's stock experienced a slight uptick of about 2% on Monday. According to a filing made by Tesla on Sunday, the newly awarded shares will vest in two years, provided that Musk remains in his role as CEO or holds another key executive position within the company. However, this award could be forfeited if the ongoing legal dispute concerning his 2018 compensation leads to Musk being allowed to access a much larger pay package, which was previously appraised at $56 billion. Earlier this year, Chancellor Kathaleen McCormick affirmed a ruling in the case of Tornetta v. Musk, determining that the original compensation plan was improperly approved. Shareholders of Tesla had approved the controversial pay package back in June 2024. The matter is currently under review by the Delaware Supreme Court, adding another layer of complexity to Musk's compensation saga.