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On Monday, Tesla granted CEO Elon Musk A new payment agreement of $ 29 billion focused on keeping the billionaire entrepreneur at the helm while the company is running from its struggling electric vehicle activities to robotaxis and humanoid robots.
The company described the “Interim Award” of 96 million new shares as a “good faith” payment in honor of the more than $ 50 billion wage package from 2018 that was taken down by a court in Delaware last year.
According to the conditions of the price, Musk can claim the shares if he Top Executive at Tesla Two more years and a court recovers the 2018 package that is currently on appeal.
Musk must also hold the shares for five years and can buy them for $ 23.34 per share, the same as the exercise price of his 2018 award.
Teslas is still destroyed despite the Fallout of CEO Elon Musk with White House
Tesla CEO Elon Musk’s 2018 wage package, with a value of more than $ 50 billion, is currently the subject of a continuous legal battle. (Jamie Kelter Davis / Bloomberg via Getty Images / Getty images)
Tesla is also planning to raise a longer term CEO compensation Plan at his annual investor meeting on November 6.
The move is intended to keep Musk, the public face of Tesla and the architect of his robotaxi strategy, aimed at the EV Maker Because it undergoes a strategic pivot.
It is also in the midst of speculation that the patience of the Tesla Board with Musk Dun could bear because of the political activism of the billionaire and the tumultuous time to work with the Trump administration.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| Tsla | Tesla Inc. | 302.63 | -5.64 |
-1.83% |
The sale has fallen at the company in the midst of a tough competitive landscape and a stagnant vehicle setup.
Musk’s political involvement and his broader business empire – including artificial intelligence Startup Xai and Space Exploration firm SpaceX – have also led to concern about his focus on Tesla, the most important source of his wealth. He threatened to leave the company unless he gets more control over Tesla.
Elon Musk Ally who worked on Doge -Leaves the Government
The role of Elon Musk in the Trump government led to protests against Tesla. (Win McNamee / Getty Images / Getty Images)
With the new share price, the importance of Musk in Tesla would grow from its current level of 12.7%, the largest among shareholders, up to 15%, according to Reuters calculations based on data collected by LSEG.
The step to give Musk more control over the company’s board still sees him as the best suitable leader to take on the challenges of the company in the coming years.
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Prior to Monday’s subsidy, Musk did not have an active compensation plan, and Tesla said that he had not received useful wages since 2017.
The board said that with the legal fight In the 2018 package that is expected to continue, the interim prize is a means to retain Musk’s ‘extraordinary talent’.
Reuters has contributed to this report.
