Tesla grants Musk $29 billion in stock to ‘keep Elon focused’

Tesla granted shares to Elon Musk worth around $29 billion, the company said Monday, describing it as a “good faith” award to help retain the carmaker's chief after his previous multibillion-dollar pay package was struck down by a judge.

- JACK EWING

The company approved a grant of 96 million shares for Mr Musk, which he could tap after two years of service in a “senior leadership role” at Tesla. The mercurial billionaire, whose business empire includes rockets, artificial intelligence, brain implants and more, hinted last month that he wanted more shares in Tesla, on top of his 13% stake, to prevent his ouster by “activist” shareholders. It was a “major concern,” he said on an earnings call with analysts.

The package amounted to an extraordinary pay raise for Mr Musk when Tesla sales and profit are falling and the company is losing market share, in part because of his behaviour. His involvement in right-wing politics has alienated many liberal car buyers, who are more likely than conservatives to buy electric vehicles. Mr Musk is already the world’s richest person, worth about $350 billion, according to Bloomberg.

The action by Tesla’s board of directors is likely to fuel criticism that the members, who include several close friends and his brother, are failing to act as a check on Mr Musk. In a regulatory filing, the board did not impose any conditions on him except that he remain in a senior leadership role for two years. Typically, executive pay is tied to performance goals.