Tesla’s board has granted CEO Elon Musk an interim compensation package of 96 million restricted stock units (RSUs), with a current value near $29 billion, aimed at ensuring his continued leadership through 2027. The award is contingent on Musk maintaining a senior executive role and aligns with a broader shift toward AI and robotics. 

The package is a stopgap after a 2018 compensation plan worth approximately $55–56 billion was struck down by a Delaware court, which found the board had failed to act independently. Musk is appealing the decision, and if the original award is reinstated, the interim grant will be clawed back to prevent double compensation. 

According to Tesla’s filing, the board unanimously approved the new stock award—after Musk and his brother recused themselves—citing the need to retain Musk amid intensifying global competition for AI talent and his leadership across Tesla’s expanding domains. 

The shares are priced at $23.34 per unit—the same price Musk would pay under the original 2018 award—and will vest only if Musk remains in a key leadership role through at least August 2027. Upon vesting, the shares are subject to a five‑year lockup, meaning Musk cannot sell them before 2032 except under limited circumstances. 

Tesla board chair Robyn Denholm and board member Kathleen Wilson‑Thompson emphasized Musk’s unique combination of “leadership experience, technical expertise” and his unparalleled track record at the company. The grant is framed as essential to maintaining Musk’s focus on Tesla, even as he balances roles at xAI, Neuralink, SpaceX, and The Boring Company. 

Despite this, the move has reignited debate over corporate governance and executive compensation. Critics argue that rewarding a CEO with another enormous package—at a time when the company faces declining sales and investor scrutiny—undermines incentive theory and highlights the board’s limited leverage over Musk. 

Investor response has been cautiously optimistic: Tesla’s share price rose by around 3% premarket following the announcement. Nonetheless, the stock is down approximately 25–30% year‑to‑date. Shareholders are set to review a longer‑term CEO compensation proposal at Tesla’s annual meeting in November. 

Tesla currently faces mounting competition in electric vehicles, regulatory challenges, and growing pressure to deliver on its transition to AI‑driven mobility, including robotaxis and humanoid robots. The board’s willingness to tie Musk to the company with another multibillion-dollar package underscores the stakes.