Tesla proposes $29 billion stock grant to retain Elon Musk as CEO until 2027

Tesla has proposed granting CEO Elon Musk a restricted stock award of 96 million shares, worth about $29 billion, in an effort to secure his leadership through 2027. The move comes as the company appeals a Delaware court ruling that voided Musk’s original $50 billion compensation package from 2018, which a judge deemed flawed and overly influenced by Musk.

Despite shareholders twice approving the original deal, the court blocked it earlier this year. Tesla has taken the case to the Delaware Supreme Court, while simultaneously asking investors to approve this new award. The board argues that Musk’s continued involvement is crucial as Tesla pushes into artificial intelligence and robotics.

“While we recognize that Elon’s business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging, we are confident that this award will incentivise Elon to remain at Tesla and focus his unmatched leadership abilities on further creating shareholder value for Tesla shareholders and attracting and retaining talent at Tesla,” board chair Robyn Denholm and board member Kathleen Wilson-Thompson wrote in a letter to shareholders.

If the Delaware courts reinstate Musk’s 2018 pay package in full, the interim grant would be forfeited or adjusted to avoid what the board calls a “double dip.” Accepting the new grant would commit Musk to stay as CEO until at least 2027. Shareholders will vote on the proposal at Tesla’s annual meeting on November 6.

The proposal comes at a turbulent time for Tesla. The company’s sales have dropped sharply amid nationwide protests over Musk’s political activities, including his support for former President Donald Trump and involvement in federal workforce cuts. Tesla’s stock has fallen more than 20 percent in 2025. Its only new product since 2020, the Cybertruck, has been widely criticised, and the recently launched robotaxi service in Austin failed to meet Musk’s earlier promises.

Musk, Tesla’s largest shareholder with a 13 percent stake, has said he wants more control over the company to safeguard its mission. “That is a major concern for me, as I’ve mentioned in the past, and I hope that is addressed at the upcoming shareholders meeting,” Musk said on a recent earnings call. “I think my control of Tesla should be enough to ensure that it goes in a good direction, but not so much control that I can’t be thrown out if I go crazy.”