Tesla grants $30 billion in shares to Musk

In Short:
– Tesla’s board approved granting 96 million shares to Elon Musk after his threat to leave.
– The decision aims to retain Musk’s leadership amid his legal issues and concerns about control within the company.

Tesla’s board approved granting 96 million shares, worth approximately $30 billion, to Elon Musk following his threat to leave the company if he did not receive more stock.

The decision was recommended by a special committee, consisting of chair Robyn Denholm and Kathleen Wilson-Thompson, and subsequently approved by the board.

The company stated in a letter to shareholders that retaining Musk is crucial and that this award aims to incentivise his continued leadership.

Musk’s ongoing legal battle in Delaware over a previous pay package – a $56 billion deal deemed excessive by a judge – has contributed to his recent threats of leaving.

Control Issues

Musk expressed concerns about his influence within Tesla, explaining the need for a balance of control to ensure the company’s positive direction while allowing for accountability.

If his previous pay package is reinstated, his ownership in Tesla could rise from nearly 13% to over 20%. Musk would pay $23.34 per share for the restricted stock.