In a dramatic bid to retain its visionary leader, Tesla has awarded Elon Musk $29 billion in shares, bolstering his stake and commitment to the electric vehicle giant at a critical inflection point. This comes after a Delaware court invalidated Musk’s historic 2018 compensation package worth over $50 billion, calling it “unfair to shareholders.”
The new award, while still under legal scrutiny, is a strategic move to ensure Elon Musk continues to spearhead Tesla’s transformation from a car manufacturer into a cutting-edge AI and robotics powerhouse. The company’s board declared that this substantial stock grant is designed to secure Musk’s leadership “as the war for AI talent intensifies.”
Why Tesla Is Doubling Down on Elon Musk
The timing of the stock grant is no coincidence. With major tech companies like Meta and Microsoft aggressively poaching top AI talent, Tesla emphasized its urgent need to retain Musk, who it says is unparalleled in his combination of “leadership experience and technical expertise.” His track record includes building globally disruptive ventures such as Tesla, SpaceX, Neuralink, and The Boring Company.
“Elon Musk is Tesla’s biggest asset,” said Dan Ives, a senior analyst at Wedbush Securities. “Losing his full-time commitment would be a devastating blow—especially now when Tesla is pivoting to become more than just an EV company.”
Tesla’s board echoed this sentiment on X (formerly Twitter), a platform also owned by Musk, stating that no other individual matches his innovative vision and ability to scale revolutionary businesses. With the company at a technological crossroads, Tesla considers Musk’s focus as essential to shaping its AI-driven future.
What’s Next in the Legal Battle?
Despite the new award, Elon Musk is continuing to appeal the Delaware court’s decision to rescind his 2018 pay package. If reinstated, Musk has promised to forfeit the new $29 billion share deal to prevent any “double dip” in compensation.
Legal experts note that the appeal centers on shareholder autonomy—Musk argues that shareholders, not courts, should determine executive compensation. The final ruling could set a major precedent in corporate governance across the U.S.
Elon Musk’s Expanding Role Across Sectors
While Elon Musk remains Tesla’s CEO, his time is divided among several ventures. He recently launched xAI, an artificial intelligence company competing with OpenAI and Anthropic. His neuroscience startup Neuralink has begun human trials, while The Boring Company continues to expand its tunnel infrastructure projects in the U.S.
Tesla acknowledges that with these growing responsibilities, the new incentive package must be “attractive enough” to retain Musk’s attention. With the company aiming to dominate in autonomous vehicles, robotics, and AI chips, keeping its leader focused is now more vital than ever.
The Bigger Picture: Tesla in an AI Arms Race
The competitive landscape is fierce. Meta’s Mark Zuckerberg reportedly offered massive packages to AI experts from OpenAI. Microsoft’s AI division, led by Mustafa Suleyman, has recently lured key talent from Google DeepMind. Amid this hiring frenzy, Elon Musk’s continued leadership gives Tesla an edge not just in innovation but also in attracting and retaining top-tier technical talent.
Tesla believes it is now at a turning point, moving beyond electric vehicles into artificial intelligence-driven ecosystems—an ambition that requires Elon Musk’s full vision, influence, and presence.
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