News Summary

Tesla’s board has approved a significant compensation package for CEO Elon Musk, granting him 96 million restricted shares valued at approximately $29 billion. This interim award is intended to retain Musk in a senior executive role through 2027, as a legal battle continues over a voided 2018 performance package. The board’s decision underscores Musk’s critical role in Tesla’s future, particularly as the company pivots towards AI, robotics, and robotaxi services. The package mirrors the original 2018 deal, which a Delaware judge invalidated last year; however, it will be forfeited or scaled back if the courts fully reinstate the 2018 award. Musk must hold a senior leadership role at Tesla until at least August 2027 and cannot sell shares for five years, except under managed conditions. The company plans to present a longer-term CEO compensation proposal at the annual shareholders meeting in November 2025.