Tesla CEO Elon Musk has secured a staggering $29 billion pay package, even as the electric car giant navigates declining sales and a bold shift toward AI and robotics. The award, approved by Tesla’s board, underscores their confidence in Musk’s ability to guide the company through a challenging period.
Board Stands Firm Despite Legal Battles
The decision comes months after a Delaware court struck down Musk’s original 2018 performance award following a shareholder lawsuit. Tesla is appealing the ruling, but there’s no set timeline for resolution. In a letter to shareholders, the board stressed that Musk has not received “meaningful compensation” in eight years and reaffirmed efforts to reinstate the earlier package.
The newly approved plan grants Musk 96 million Tesla shares, each trading at over $300. He would pay $23.34 per share — the same cost set in 2018 — locking in significant potential gains if the company’s stock rebounds.
Defending Musk’s Track Record
Tesla board members Robyn Denholm and Kathleen Wilson-Thompson praised Musk for achieving the growth milestones tied to his 2018 award. They credited his leadership for creating “immense value” for both Tesla and its shareholders.
Musk, who owns about 13% of Tesla, does not take a salary or bonus. Instead, his wealth comes from stock options priced far below market value — a strategy that has made him one of the world’s richest individuals.
Political Moves Stir Backlash
Musk’s foray into U.S. politics last year and early in 2025 has divided shareholders. His high-profile push to elect Republican candidates drew criticism and protests at Tesla dealerships. The political shift coincided with a sharp drop in Tesla sales and a 25% decline in the company’s share price this year.
Adding to the pressure, President Donald Trump’s domestic agenda removed tax incentives for EV buyers and cut regulatory credit opportunities — two critical revenue streams for Tesla.
Back to Business — With a New Focus
Responding to investor concerns, Musk has promised to return to running his companies full-time. He is steering Tesla toward artificial intelligence, robotics, and related services, reducing its heavy reliance on electric vehicle sales.
Tesla’s current projects include a scaled-back rollout of its long-promised robotaxi service. The board describes this pivot as a natural evolution of Musk’s vision, positioning Tesla for leadership in emerging tech fields beyond transportation.
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