The post Elon Musk Gets $29B Tesla Stock to Drive AI and Robotics Shift appeared first on Coinpedia Fintech News
Tesla has just awarded CEO Elon Musk a massive $29 billion in stock, according to Reuters. This is to keep him leading the company as it shifts focus from its slowing car business to AI and robotics.
This comes at a critical time as Tesla’s core electric vehicle business is losing steam. To stay ahead, Musk is steering the company toward bold new ventures, including robotaxis and humanoid robots, which he claims, will define Tesla’s future.
Board Backs Musk’s Vision
Tesla’s board posted on X, saying it’s crucial to keep and motivate top talent, starting with Elon. They praised his unique mix of leadership and technical skills, calling him a “proven builder of revolutionary, profitable companies”.
Where Did the Stock Grant Come From?
The $29 billion stock grant is part of a 2018 pay deal that rewarded Elon Musk for meeting big goals like growing Tesla’s value and revenue. A judge blocked the plan earlier this year over fairness concerns, but shareholders have now voted to bring it back, unlocking Musk’s payout.
Tesla called the grant of 96 million new shares a “good faith” first step toward honoring Musk’s original $50 billion pay package. A new long-term CEO pay plan will be voted on by investors at the annual meeting on November 6.
Shareholder Approval and New Terms
Musk’s new shares only vest if he stays in a key executive role through 2027. Once vested, he must hold them for five years, except to cover taxes or the $23.34 per share purchase price, the same price set in his 2018 pay plan. If the court restores his 2018 pay deal, this grant will be canceled or reduced to prevent double compensation.
The plan was backed by a special board committee, including chair Robyn Denholm and director Kathleen Wilson-Thompson.
The committee noted that although Elon has many ventures competing for his time, they believe that the award will “incentivize Elon to remain at Tesla.”
Tesla Rises 2%, Bitcoin Gains Stand Out
Tesla shares rose 2% after Elon Musk’s new pay deal announcement. Still, the stock is down 25% this year due to falling sales, aging models, and backlash over Musk’s political views. Customer loyalty has dropped since Musk endorsed Trump, and analysts expect another sales decline in 2025.
Tesla missed Q2 estimates with $22.5B revenue and $0.40 EPS, both below forecasts.
However, Tesla’s $284 million Bitcoin gains stood out. Due to the new accounting rules, its crypto holdings rose from $951 million to $1.24 billion. But the gain could have been far bigger. Tesla bought 43,200 BTC in 2021 for $1.5 billion, then sold over 75% of it during market lows, earning just $936 million.
All eyes are on Musk now as the internet is eagerly waiting to hear what he says next.
