Tesla approves $29bn share award to Musk

Group 1 - Tesla's board has approved a $29 billion share award to Elon Musk, consisting of 96 million new shares, following a court's blockage of a previous, larger package [1][7] - The new share award aims to enhance Musk's voting power from the current 13%, ensuring his continued leadership as CEO [1] - The decision to increase Musk's stake is seen as crucial for maintaining his focus on Tesla amid his political associations, particularly with Donald Trump [2][3] Group 2 - Tesla is currently focused on launching a new, cheaper model to boost sales and compete against rising competition, especially from China [4] - The company faces challenges due to reduced support for electric vehicles from the Trump administration, which Musk acknowledges could lead to "a few rough quarters" [4] - Tesla's revenues are not expected to reflect the anticipated rollout of its self-driving software until late next year [7] Group 3 - A special committee within Tesla's board has been formed to address compensation matters related to Musk, with the new award pending shareholder approval [8][10] - The committee expressed confidence that the new award will incentivize Musk to remain with Tesla, despite his extensive business interests [10] - If the Delaware courts reinstate the previous 2018 performance award, the new interim grant will either be forfeited or adjusted to prevent double compensation [10]