Elon Musk gets $29B pay package from Tesla board to keep him at EV maker

Core Points - Tesla's board awarded Elon Musk a new pay package worth $29 billion, which vests in two years, aimed at retaining him during a critical transition from its struggling auto business to robotaxis and humanoid robots [1][12] - The deal grants Musk 96 million new shares, amidst a prolonged sales slump affecting Tesla's stock performance [1][6] - The special committee overseeing Musk's compensation expressed confidence that this award will incentivize him to remain at Tesla, despite his extensive business interests [2] Compensation Context - A previous stock-based compensation package for Musk, valued at over $50 billion, was rejected by a Delaware judge for being excessive, leading to Musk's appeal and the relocation of Tesla's incorporation to Texas [3][4] - The new $29 billion package will not result in a "double dip" if the original deal is restored; it will either be voided or offset [4] - Musk is Tesla's largest individual shareholder, owning approximately 13% of the company, and the announcement is expected to alleviate investor concerns regarding his commitment [6] Strategic Importance - Analysts emphasize the necessity of establishing a long-term compensation strategy before Tesla's upcoming shareholder meeting on November 6, which will address ongoing concerns [9] - The new shares will vest only if Musk remains a key executive through at least 2027, with a five-year lockup period for selling shares [9] - Tesla faces challenges such as an aging car lineup and increased competition from Chinese automakers like BYD, which Musk will need to address to lead a successful turnaround [11]