Tesla(US:TSLA) Sou Hu Cai Jing·2025-08-05 03:13Core Viewpoint - Tesla has awarded Elon Musk approximately $29 billion in stock options, a move seen as a strategy to retain him as CEO and align his interests with the company's future [1][3]. Group 1: Stock Award Details - On August 3, Tesla announced the grant of 96 million restricted stock units to Musk, valued at around $29 billion based on current stock prices [3]. - Musk must purchase the shares at $23.34 each and meet two conditions: remain CEO until 2027 and hold the shares for five years, unless selling to pay taxes [3][6]. Group 2: Reasons for the Stock Award - The stock award serves as a "Plan B" following a court ruling that deemed Musk's previous $56 billion compensation plan unfair to shareholders, thus Tesla sought a legal workaround [6]. - Tesla's board views this as essential to retain Musk, especially as the company transitions towards AI technology, which is heavily reliant on his vision and leadership [7][8]. - The terms of the stock award also suggest a strategy to increase Musk's voting power, potentially elevating his influence from 13% to nearly 20% [9][10]. Group 3: Implications of the Stock Award - For shareholders, opinions are divided; some believe Musk's focus could lead to stock price increases, while others fear that using shareholder funds for CEO compensation may disadvantage ordinary investors [13]. - Musk faces both wealth increase and risk, as he would need to invest $2.2 billion to exercise the stock options, with the potential for the new award to be revoked if the court reinstates the previous compensation plan [14][15]. - Analysts warn that Tesla's heavy reliance on Musk poses risks, as his decisions could significantly impact the company's stability and future [16].