Tesla board awards $30bn of shares to Elon Musk

Tesla's board has given a $30bn share award to Elon Musk after legal challenges to a previous pay deal.

Tesla board grants Musk $30bn share award amid court ruling

Tesla's board has approved a $30bn share award to CEO Elon Musk following a court's decision against an earlier multi-billion pay deal. Musk will invest $2bn to buy 96 million shares at the 2018 price, even as the previous compensation scheme remains legally contested. This move was endorsed by the board's special committee, which emphasized the need to recognize Musk's contributions to the company and address shareholder concerns regarding his political activities and focus on Tesla. While this award serves as a goodwill gesture, it comes amid challenges for Tesla in maintaining customer loyalty and sales amid Musk’s politically charged actions.

Musk's growing political entanglement poses risks not only to his reputation but also to Tesla's market performance and brand loyalty. The significant drop in customer retention since his support for Donald Trump illustrates how his external actions ripple into business metrics. By awarding Musk a vast number of shares, Tesla's leadership attempts to solidify his focus on the company's core mission, but this strategy may backfire if public perceptions continue to sour. As Tesla pivots towards robotics and AI, the pressure mounts for Musk to balance personal interests with corporate responsibilities, presenting a delicate act of public relations.

Highlights

The path ahead remains uncertain for Tesla as it adapts to market dynamics and leadership challenges.