As part of a new compensation plan meant to make sure the billionaire inventor stays in charge Tesla (TSLA.O) has rewarded CEO Elon Musk with a new stock award worth about $29 billion. The move comes during the company’s shift from struggling car sales to developing robotaxis and humanoid robots.
Musk will be qualified to seek the new stock award prize if he stays in a senior executive role for two more years and a court does not bring back the 2018 compensation plan, now under review. He is obligated to hold the shares for five years, which is the same exercise price set in the 2018 contract, at a price of $23.34 per share. Tesla also intends to unveil a long-term CEO remuneration plan for a vote during its annual investor meeting set for November 6.
New stock award keeping Musk, who serves as the public face of Tesla and the driving force behind its robotaxi plan, centered on the electric car manufacturer as it moves away from its original automotive business and toward cybercabs and robotics. Moreover, this decision seems to alleviate any reservations about the board’s dwindling patience with Musk, particularly in view of the recent turbulent months, which included the CEO’s involvement in political concerns.
Giving Musk more authority over the company suggests that the board members continue to see him as the most qualified person to face future difficulties confronting Tesla. Due to its outdated vehicle line, fierce competition, and Musk’s right-wing political beliefs, which have damaged its brand image, the company has seen shrinking sales. Shared only with Reuters, data from S&P Global Mobility showed on Monday that Tesla’s brand loyalty had greatly declined since Musk last summer publicly supported U.S. President Donald Trump.
Some questions have been raised regarding Musk’s political involvement and his wider company interests, including his artificial intelligence startup xAI, because his primary source of wealth remains Tesla. Musk has suggested that he might consider leaving if he is not given additional control over Tesla.
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