Tesla Grants Elon Musk $29 Billion in Stock to Retain Leadership Amid Legal Battle
August 4, 2025 — Tesla Inc. has awarded CEO Elon Musk 96 million shares, estimated to be worth around $29 billion, in a strategic move aimed at retaining the visionary leader at a critical time for the company.
The massive stock grant comes as Musk challenges a Delaware court ruling that voided his previous compensation package, citing it as unfair to shareholders. The original pay deal, one of the most lucrative in corporate history, had been a key motivator for Musk’s continued leadership and bold expansion of Tesla’s operations across energy, automotive, and artificial intelligence sectors.
The new stock award underscores Tesla’s commitment to keeping Musk at the helm as the company navigates mounting legal scrutiny, increased competition, and ambitious global growth plans.
In a statement, Tesla’s board highlighted Musk’s “unparalleled contributions” to the company’s meteoric rise and reaffirmed their confidence in his leadership, noting that the new grant aligns his incentives with long-term shareholder value.
Musk has yet to publicly comment on the new deal, but the announcement is already stirring reactions across Wall Street and the broader tech industry. Legal experts and investor advocates continue to monitor the case closely, especially regarding the balance between executive rewards and shareholder rights.
The outcome of Musk’s ongoing legal battle and the sustainability of such high-stakes compensation arrangements may set a precedent for executive pay across the corporate world.
