Tesla Grants Elon Musk $29B Share Award Amid Legal Battle Over 2018 Pay Package

Tesla shares ROSE 2.37% to $309.80 following the announcement of a new $29.1 billion equity award for CEO Elon Musk. The compensation plan serves as insurance against a Delaware court's rejection of Musk's record-breaking $56 billion 2018 package, which was voided for unfairness to shareholders.

The electric vehicle maker framed the award as critical retention tool as Tesla pivots toward AI and robotics development. With tech giants aggressively poaching artificial intelligence talent, Tesla's board argues the package ensures Musk remains focused on the company during this strategic transition.

Legal observers note the Delaware case could redefine corporate governance standards for executive compensation. If the court reinstates the original 2018 agreement, the new award WOULD automatically cancel to prevent duplicate compensation.