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.
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Russian President Vladimir Putin has said that he thinks there is a chance of a peace being reached with Ukraine. He told the Eastern Economic Forum in Vladivostok, Russia that he believed there was "a chance of finding a solution," to the conflict.
U.S. negotiators Steve Witkoff and Jared Kushner will visit Russia then Ukraine over the weekend, Russian state news agency TASS has reported, citing an unnamed source. Ukrainian President Volodymyr Zelenskyy has also said American envoys will visit the capitals of both countries.
The Iranian Health Ministry said at least 18 people were killed and 142 others injured in U.S. airstrikes carried out between 30 August and 2 September.
The Iranian Army has again struck at U.S. bases in Kuwait and the United Arab Emirates in retaliation for U.S. attacks on southern and western parts of Iran late on Tuesday, which reportedly killed 18 people and injured more than 100 others.
U.S. efforts to squeeze Iran’s economy through an oil blockade and sanctions are becoming increasingly difficult for Tehran to withstand, according to three senior Iranian sources. Washington is escalating pressure in hopes of securing concessions in future negotiations.
Volkswagen’s supervisory board has approved a major overhaul aimed at cutting 100,000 jobs by 2030 as the German carmaker battles weaker sales, falling profits and intensifying global competition.
Chinese Premier Li Qiang has called on American companies to expand their presence in China and pledged that Beijing would address their "reasonable concerns," as China looks to stabilise trade ties with Washington ahead of President Xi Jinping's planned visit to the U.S. later this month
Apple is entering a new era as Tim Cook steps down as chief executive after 15 years at the helm, handing the technology giant's leadership to longtime executive John Ternus.
Volkswagen is heading towards a decisive showdown with labour representatives as Germany's largest carmaker weighs sweeping restructuring measures that could lead to factory closures and tens of thousands of job losses.
Online fast-fashion retailer Shein is seeking to raise up to $1.77 billion in a Hong Kong IPO after its valuation fell around 70 per cent from its private-market peak four years ago.
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