Tesla has granted Elon Musk a $29 billion share award as part of a new compensation plan to retain him as CEO while the company shifts focus from electric cars to robotaxis and AI. The move revives elements of a controversial 2018 package previously struck down by a Delaware court.
Tesla referred to the new award as a 'good faith' gesture, with a more permanent compensation plan set for shareholder vote on 6 November.
Musk, who owns about 13% of Tesla, is expected to receive the shares only if he remains in a key executive role through 2027.
The stock has a five-year holding requirement, aside from coverage for taxes or the $23.34 per share purchase cost, the same as the 2018 award’s exercise price.
The company’s special compensation committee, made up of board chair Robyn Denholm and independent director Kathleen Wilson-Thompson, stated that while Musk has many outside ventures, this award is crucial to keeping him engaged in Tesla's long-term mission.
"We are confident this award will incentivize Elon to remain at Tesla," the committee said.
Supporters argue the move restores confidence in Musk’s continued leadership. Tesla investor Gary Black noted on X that the award aligns Musk’s incentives with shareholders and eases fears about him stepping down.
Despite a 2,000% gain in Tesla shares over the past decade, the stock has lost about 25% this year during slowing EV sales, an aging lineup, and U.S. subsidy cuts.
Analysts forecast another year of declining sales in 2025, following a slump last year.
A Japanese city near Mount Fuji has cancelled its annual cherry blossom festival, saying growing numbers of badly behaved tourists are disrupting dail...
Russia launched a large-scale overnight attack on Ukraine’s energy system early on Saturday (7 January), hitting power generation and distribution f...
U.S. has become a central outside power in the south caucasus, shaping diplomacy, security and energy flows. Its relations with Azerbaijan and Armenia...
Iran would retaliate by striking U.S. military bases across the Middle East if it comes under attack by American forces, Foreign Minister Abbas Araghc...
France and Canada opened new consulates in Nuuk, Greenland’s capital, on Friday, stepping up their Arctic presence in a show of support for Denmark,...
A Japanese city near Mount Fuji has cancelled its annual cherry blossom festival, saying growing numbers of badly behaved tourists are disrupting daily life for residents.
Russia launched a large-scale overnight attack on Ukraine’s energy system early on Saturday (7 January), hitting power generation and distribution facilities with more than 400 drones and around 40 missiles, Ukrainian officials have said.
U.S. has become a central outside power in the south caucasus, shaping diplomacy, security and energy flows. Its relations with Azerbaijan and Armenia have evolved from similar beginnings into two distinct partnerships that now define Washington’s role in the region.
Iran would retaliate by striking U.S. military bases across the Middle East if it comes under attack by American forces, Foreign Minister Abbas Araghchi said on Saturday (7 January), stressing that such action should not be seen as targeting the countries hosting those bases.
Winter weather has brought air travel in the German capital to a complete halt, stranding thousands of passengers as severe icing conditions make runways and aircraft unsafe for operation and force authorities to shut down one of Europe’s key transport hubs.
Storm Leonardo hit Spain and Portugal on Tuesday, forcing more than 11,000 people from their homes, as a man in Portugal died after his car was swept away by floodwaters and a second body was found in Malaga.
An attacker opened fire at the gates of a Shiite Muslim mosque in Islamabad on Friday before detonating a suicide bomb that killed at least 31 people in the deadliest assault of its kind in the capital in more than a decade.
Iran and the United States opened nuclear talks in Oman on Friday, with Tehran calling the meeting a good start and both sides agreeing to continue discussions after returning to their capitals for consultations.
Start your day informed with AnewZ Morning Brief: here are the top news stories for the 6th of February, covering the latest developments you need to know.
Türkiye’s national energy company, TPAO, has struck a new cooperation deal with U.S. energy giant Chevron, signing a memorandum of understanding to explore joint oil and gas exploration and production opportunities, the Turkish Energy and Natural Resources Ministry announced on Thursday.
Wall Street ended sharply lower on Tuesday as investors worried about artificial intelligence (AI) creating more competition for software makers, keeping them on edge ahead of quarterly reports from Alphabet and Amazon later this week.
U.S. stock markets finished mixed on Wednesday (28 January) as investors reacted calmly after the Federal Reserve left interest rates unchanged, a decision that had been widely expected and largely priced in.
The S&P 500 edged to a record closing high on Tuesday, marking its fifth consecutive day of gains, as strong advances in technology stocks offset a sharp selloff in healthcare shares and a mixed batch of corporate earnings.
Chevron is in talks with Iraq’s oil ministry over potential changes to the commercial framework governing the West Qurna 2 oilfield, one of the world’s largest producing assets, after Baghdad nationalised the field earlier this month following U.S. sanctions imposed on Russia’s Lukoil.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment