Board awards Musk $29bn to keep him 'focused on Tesla'

Tesla's board has approved the award of $29bn (£22bn) worth of shares to its chief executive, Elon Musk, after a US court ruled against a previous pay deal for the world's richest person.

- Dan Milmo

Musk will pay $2bn to buy 96m shares in the electric carmaker at the same price per share as a 10-year pay package agreed in 2018, which is stuck in legal limbo awaiting a court date for an appeal.

The award was based on a recommendation from a "special committee" of the board.

The announcement was accompanied by a shareholder letter from two members of the committee, Robyn Denholm, Tesla's chair, and Kathleen Wilson-Thompson.

It said the award was a "good faith" payment to Musk after the previous pay deal, worth $56bn, was rescinded in 2024 by a judge in Delaware, where the firm was incorporated until June that year.

"To recognise what Elon has accomplished and the extraordinary value he delivered to Tesla and our shareholders, we believe we must take action to honour the bargain that was struck in 2018," the directors wrote.

"After all, 'a deal is a deal'."

Denholm and Wilson-Thompson said they had reviewed investors' letters and posts on X and acknowledged concerns about his focus on his job.