Tesla board awards $30bn of shares to Elon Musk

Core Viewpoint - Tesla's board has approved a $30 billion share award to CEO Elon Musk following a court ruling against a previous pay deal, emphasizing the need to honor the original agreement made in 2018 [1][2][3] Group 1: Share Award Details - Musk will purchase 96 million shares for $2 billion at the price set in the 2018 pay package, which is currently under legal review [1] - The award is described as a "good faith" payment after a previous $56 billion pay deal was rescinded by a judge in 2024 [2] - The share award is based on a recommendation from a special committee of the board, which includes Tesla chair Robyn Denholm and Kathleen Wilson-Thompson [2][5] Group 2: Impact on Tesla's Brand and Sales - Musk's political involvement has negatively impacted Tesla's brand and sales, raising concerns among shareholders [4][6] - A survey indicated a significant drop in customer loyalty, with Tesla-owning households' likelihood of purchasing another Tesla falling from 73% in June 2024 to 49.9% in March [7] Group 3: Future Focus and Strategy - Tesla is shifting its focus towards robotaxis and humanoid robots, positioning itself more as an AI and robotics firm rather than just an automaker [8] - The award is intended to incentivize Musk to remain focused on Tesla's mission and gradually increase his voting power, which is seen as crucial for the company's direction [9] Group 4: Market Reaction - Tesla shares have experienced a nearly 20% decline this year but rose more than 2% in premarket trading following the announcement of the share award [10]