Elon Musk Secures $29 Billion Payday as Tesla Shifts Focus to AI and Robotics Amid Political Controversy
Tesla’s Board Approves Massive Pay Package for CEO Elon Musk, Valued at Approximately $29 Billion
Tesla shareholders have received news of a substantial pay package for CEO Elon Musk, worth approximately $29 billion. This announcement comes following two court rejections by Delaware courts concerning Musk’s 2018 performance award, as a result of a shareholder lawsuit. Musk is currently appealing the decision.
In a letter to shareholders on Monday, Tesla stated that Musk has not received significant compensation for eight years and continues to work tirelessly towards reinstating the 2018 pay package. The company emphasized a “clear timeline for resolution.”
The package consists of 96 million shares of Tesla stock, with each share currently trading at around $300. Musk would be required to pay $23.34 per share, equivalent to the initial cost when his 2018 compensation was awarded.
In the letter, board members Robyn Denholm and Kathleen Wilson-Thompson acknowledged that “Elon has delivered the transformative and unprecedented growth that was required to earn all milestones of the 2018 CEO Performance Award.” They also highlighted Musk’s contributions in generating immense value for Tesla and its shareholders.
Musk, a billionaire and one of the world’s richest individuals, does not receive a cash salary or bonus from Tesla. Instead, his wealth primarily comes from stock options that allow him to purchase millions of Tesla shares at significantly reduced prices. Musk holds approximately 13% ownership in Tesla as its largest individual shareholder.
Last year and earlier in 2025, Musk’s involvement in politics drew criticism from some shareholders. He spent substantial funds and time supporting Republican candidates, which subsequently impacted Tesla negatively. Opponents have protested at Tesla dealerships throughout the year, while sales have been declining sharply. Furthermore, President Donald Trump’s domestic policy agenda has eliminated tax incentives for electric vehicle (EV) makers like Tesla and revoked regulatory credits from other automakers – a significant contributor to Tesla’s revenue.
Shares of Tesla (TSLA) have fallen 25% this year, but premarket trading saw a near 3% increase following the news of Musk’s pay package.
Recently, Musk has expressed his intention to return to his companies full time, addressing demands from shareholders who believe that his considerable track record warrants such commitment. Monday’s pay package ensures Musk continues as the helm of Tesla in its current state.
Musk is reportedly focusing Tesla on artificial intelligence (AI) and robotics, moving away from its reliance on car sales. According to Denholm and Wilson-Thompson, “through Elon’s unique vision and leadership, Tesla is transitioning from its role as a leader in the electric vehicle and renewable energy industries to grow towards becoming a leader in AI, robotics, and related services.”
Tesla is currently rolling out its highly publicized robotaxi service, albeit in a more limited capacity than initially promised a few years ago.