OR Tesla approved a temporary award shares About $ 30 billion for Managing Director Elon Musk, a huge payment aimed at keeping the billionaire’s attention to the automotive industry as the legal controversy over the 2018 remuneration package continues.
The new agreement includes 96 million Tesla shares, which will be guaranteed if Musk continues to serve for another two years, the company announced Monday (4.8.2025) in a regulatory submission. The limited shares have an exercise price of $ 23.34, equal to the price of the previous compensation program.
Tesla’s shares rose 2.1% to $ 309.10 with the start of regular transactions in New York. The company’s shares declined 25% this year until Friday’s closure (1.8.2025), compared to the 6% rise of the S&P 500.
This move highlights Musk’s influence on the company, even as it faces a fall in electric vehicles and a decline in stock price. The richest man in the world has stated that he wants a greater share in Tesla, as he reorients him for futuristic aspirations, such as artificial intelligence and driver -free vehicles.
The Board of Directors emphasized the importance of maintaining Musk, referring to a letter to shareholders published today that the award was a first step of “good faith”. “After all, a deal is an agreement” He said he is working on a long -term CEO compensation strategy, which will be voted on at the annual assembly of the electric car manufacturing company on November 6th.
The decision was made early by some investors and analysts. “Removes a weight from the share” and possibly ensures that Musk stays CEO for several years, Wedbush Dan Ives said in his note. “Musk remains the great advantage of Tesla and this issue of pay was a constant concern of shareholders».
The value of the new compensation, based on the latest trading price, does not take into account the fact that Musk has to pay $ 23.34 per share, or $ 2.24 billion in total, to collect it.
The purchase price per share – similar to the exercise price of a stock market option – is reminiscent of the time when companies granted options for their executives, but set the date of granting a earlier time when the share price was lower. This meant that the titles were immediately profitable. Retrospective dating is not illegal, but this practice has become much less common after appearing in a series of corporate scandals in the 2000s.