Tesla Grants Elon Musk $29 Billion Share Award Amid EV Market Pressures

New compensation package aims to secure Musk's leadership as Tesla faces falling sales, political fallout, and fierce competition

Tesla’s Board Approves Massive Share Award for Musk

Tesla has approved a controversial $29 billion (£21.8 billion) share award for CEO Elon Musk, in a move designed to retain the billionaire entrepreneur’s leadership amid mounting business and political challenges.

The decision follows a U.S. court ruling earlier this year that voided a previously agreed $50 billion compensation plan. That record-breaking package, agreed in 2018, was dismissed by a Delaware judge who found procedural flaws in how it was approved. The legal battle is still ongoing.

In its latest statement, Tesla’s board said the new share award—worth 96 million shares—would increase Musk’s voting power from the current 13%, reinforcing his influence over the company’s strategic direction.

Why Tesla Is Doubling Down on Musk

The board made it clear that this isn’t just about financial incentives. It’s about keeping Musk focused on Tesla, as he juggles a growing portfolio of business ventures and high-profile political relationships.

“Elon’s interests and time commitments are wide-ranging,” the board stated, “but we are confident this award will ensure his continued focus on Tesla.”

There are growing concerns that Musk’s attention has drifted—particularly after his association with Donald Trump and controversial remarks about tax cuts and federal spending. The fallout has reportedly affected Tesla’s image and contributed to a sales decline in some U.S. regions.

Political Headwinds and Market Competition Intensify

Tesla’s share price and sales performance have come under pressure in recent quarters, partly due to:

• Reduced U.S. government support for electric vehicles under the Trump administration
• Increased competition from Chinese EV makers
• Backlash from consumers over Musk’s political affiliations

Musk himself admitted recently that Tesla could be heading into a “few rough quarters” as the company works to adjust to market conditions.

The EV giant is now focusing on the launch of a new, lower-cost model, aimed at reigniting demand and expanding its market share globally. Additionally, Tesla is still in testing phases for its self-driving software, with revenue benefits from that product not expected until late 2026.

Compensation Still Faces Shareholder Scrutiny

The newly proposed $29 billion share award is not final. It will be put to a shareholder vote, and if the 2018 package is reinstated in court, the new grant may be cancelled or offset to avoid what the board calls a “double dip.”

Earlier this year, Tesla formed a special committee to oversee Musk’s compensation and governance matters. The committee has insisted the package is critical to keeping Musk at the helm during a pivotal time for the business.

Conclusion: A Bold Bet on a Divisive Figure

Tesla’s latest compensation offer to Elon Musk is as bold as it is strategic. Supporters say the move could secure long-term innovation and leadership, while critics argue it signals poor governance and a risky overdependence on one individual.

With shareholder approval still pending, the decision will not only shape Tesla’s future, but also serve as a litmus test for corporate accountability and investor confidence.

Whether this hefty reward reinvigorates Tesla’s market standing or invites further scrutiny will depend on Musk’s ability to steer the company through political turbulence, rising global competition, and technological transformation.

Sources: (SKYnews.com, Reuters.com)