Elon Musk Granted Interim $29 Billion Tesla Pay Package Amidst Ongoing Legal Battle

Tesla’s CEO, Elon Musk, secured an interim compensation package consisting of 96 million shares over the weekend. With a current market value of approximately $29 billion, these shares represent a significant addition to Musk’s holdings.

The stock price of Tesla increased by around 2% on Monday.

According to a company filing released Sunday, this compensation package would vest over the course of two years if Musk maintains his role as CEO or assumes another key executive position. However, should the legal dispute regarding his 2018 remuneration result in Musk exercising the larger pay package (initially valued at $56 billion), this new award would be forfeited.

In January, a prior ruling in the case Tornetta v. Musk was upheld by Chancellor Kathaleen McCormick, with the judge stating that the compensation plan was improperly granted. Shareholders had previously approved the pay package in June 2024.

The case is now under consideration by the Delaware Supreme Court.

Musk’s 2018 compensation package incorporated a series of performance targets for Tesla, all of which were met. The judge described it as “the largest potential compensation opportunity ever observed in public markets” in her January decision, noting that it was 33 times greater than Musk’s previous remuneration package.