Tesla Approves $29B Compensation Package to Retain Elon Musk

On August 4, 2025, Tesla's board of directors has taken a bold step to secure the future of the company's iconic founder, Elon Musk. The board has approved a $29 billion interim compensation package for Musk, granting him 96 million restricted stock units of Tesla.

This move by Tesla comes as the company continues to battle legal challenges to Musk's previous pay award, which was invalidated by Delaware courts despite shareholder approval. Tesla's leadership believes that keeping Musk focused on the company is vital, as he is also deeply involved in other ventures like SpaceX, Neuralink, and X.

The board emphasizes that Musk has gone eight years without "meaningful" compensation from Tesla, yet has delivered "transformative and unprecedented growth" that increased the company's market cap by over $700 billion. Despite Tesla's declining vehicle sales and stock price this year, the board argues that Musk's unique vision and leadership are essential for the company's future success, particularly as it transitions into AI, robotics, and related services.

Tesla's decision to approve this massive compensation package for Musk is a clear signal that the company is unwilling to back down from its commitment to the controversial mogul, even in the face of ongoing legal battles and shareholder scrutiny.