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Tesla is offering Elon Musk a massive stock award to keep him running the company through 2027. The plan gives him about 96 million shares, which are worth around $29 billion. This new offer is meant to replace his earlier pay deal from 2018, which was even bigger at $50 billion but got blocked by a Delaware court earlier this year. The judge said the process behind that old deal wasn’t fair and seemed too influenced by Musk himself.
Even though Tesla shareholders approved the old package twice, the court threw it out. Now Tesla is appealing the decision to the Delaware Supreme Court. At the same time, they’re asking shareholders to approve this new deal. The board believes Musk is key to Tesla’s future, especially now that the company is getting deeper into areas like robotics and artificial intelligence.
In a letter to shareholders, Tesla board members said they understand Musk is busy with many other ventures, but they believe this stock award will encourage him to stay focused on Tesla. They said his leadership is important for creating value, keeping talented people at the company, and pushing forward Tesla’s big goals.
If the court later brings back Musk’s original $50 billion pay deal, Tesla says this new award will either be cancelled or changed so Musk doesn’t get both. By accepting this new deal, Musk would agree to remain CEO until at least 2027.
This proposal is happening at a rocky time for Tesla. Sales have dropped sharply. Many people are boycotting the company due to Musk’s political actions, including his support for Donald Trump and involvement in major job cuts. Tesla’s stock has also fallen by over 20 per cent in 2025. The company hasn’t had many exciting new products since 2020. The Cybertruck got a lot of criticism, and its new robotaxi service in Austin didn’t meet Musk’s promises.
Musk owns 13 per cent of Tesla, which makes him the largest shareholder. He said he wants more control over Tesla to protect the company’s mission and future. In a recent earnings call, Musk said he hopes his control is strong enough to guide Tesla in the right direction, but not so strong that people can’t remove him if he ever goes too far.
Shareholders will vote on the new pay package at Tesla’s annual meeting on November 6.