Tesla proposes $29 billion stock grant to retain Elon Musk as CEO until 2027

In a strategic effort to retain Elon Musk as CEO, Tesla has proposed an eye-popping restricted stock award of 96 million shares, valued at approximately $29 billion. This initiative aims to ensure Musk's leadership remains steady through 2027, especially as the company navigates a challenging legal landscape. This proposal follows a recent Delaware court ruling that invalidated Musk's initial $50 billion compensation package from 2018, which was criticized for being excessively influenced by Musk himself. Despite receiving shareholder approval on two occasions, the court's decision earlier this year prompted Tesla to take action, appealing to the Delaware Supreme Court while simultaneously seeking shareholder endorsement for the new stock grant. Tesla's board emphasizes the importance of Musk's ongoing role as the company ventures further into the realms of artificial intelligence and robotics. In a letter to shareholders, board chair Robyn Denholm and member Kathleen Wilson-Thompson expressed confidence that this new compensation package would motivate Musk to concentrate his considerable leadership talents on growing shareholder value and attracting top talent to the company. Should the Delaware courts reinstate Musk’s 2018 compensation in full, the new stock award would either be forfeited or adjusted to prevent what the board describes as a 'double dip.' By accepting this new grant, Musk would be committing to his role as CEO for at least four more years. Shareholders are set to vote on this significant proposal during Tesla’s annual meeting on November 6. This proposal surfaces during a challenging period for Tesla, with sales experiencing a sharp decline amid nationwide protests linked to Musk’s political stances, including his support for former President Donald Trump and his involvement in federal workforce reductions. Additionally, Tesla’s stock has experienced a drop of over 20 percent in 2025. The company's only new product since 2020, the Cybertruck, has faced substantial criticism, while the recently introduced robotaxi service in Austin has not lived up to Musk's previous commitments. As the largest shareholder with a 13 percent stake, Musk has expressed a desire for greater control over Tesla to protect its core mission. "That is a major concern for me, as I’ve mentioned in the past, and I hope that is addressed at the upcoming shareholders meeting," he stated during a recent earnings call, emphasizing the need for a balance in his influence over the company’s direction.