Tesla‘s board has awarded CEO Elon Musk an interim pay package of 96 million shares, according to a filing out Monday, which would be worth about $29 billion.
The company said in the filing that Musk’s new package will include shares that vest in two years as long as he continues as CEO or in another key executive position. The award will be forfeited if the legal battle over Musk’s 2018 compensation ends with him being able to exercise shares from that package, which was valued at $56 billion when it vested.
Tesla stock climbed more than 2% on Monday.
In January, Delaware Chancellor Kathaleen McCormick upheld her ruling in Tornetta v. Musk, which found that Musk’s 2018 CEO compensation plan was improperly granted to him. The court determined, among other things, that Tesla’s board withheld key information from shareholders before asking them to approve the 2018 plan.
After the ruling, Musk began an anti-Delaware campaign and moved Tesla’s site of incorporation to Texas. Tesla also appealed the Tornetta decision, and the case is now before the Delaware state Supreme Court.
Musk owns roughly 13% of Tesla’s outstanding shares, and his level of control over the electric vehicle maker has been a regular topic online and with shareholders.
In January 2024, Musk threatened to develop artificial intelligence and robotics products outside of Tesla unless he gained greater control over the company. He said in a post on X at the time that he’s “uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control.”
Public records in Nevada show that Musk had already formed a business called xAI in March 2023, without Tesla disclosing the company’s existence to shareholders. The AI startup, now the parent of X, is developing AI products and data infrastructure and working with Tesla, integrating its Grok chatbot into the company’s EVs.
Musk’s new interim CEO pay plan was approved by a “special committee” of the Tesla board, which included board chair Robyn Denholm and director Kathleen Wilson-Thompson, according to Tesla’s financial disclosures. The plan doesn’t limit Musk’s ability to start new businesses or continue with his political work.
Last year, Musk took time away from Tesla to help reelect President Donald Trump, and then worked for the Trump administration as a special government employee leading DOGE, an initiative to slash federal agencies.
Musk’s work with the Trump administration has contributed to a consumer backlash against Tesla, and negatively weighed on its EV sales and brand reputation in the U.S. and Europe. Subsequent to a public spat with Trump, Musk said last month that he’s formed a new political party.
In July, Tesla issued a weak earnings report, with sales falling for a second straight quarter and automotive revenue dropping 16%. On a call with analysts, Musk acknowledged the looming loss of EV tax credits as a challenge for the company.
“We probably could have a few rough quarters. I am not saying that we will, but we could,” Musk said.
Tesla plans to hold its next annual shareholder meeting in November.
WATCH: Musk boasts about Tesla’s robotaxi plans
