Tesla gives Musk $29 billion in shares
A ‘special committee’ of Tesla’s board of directors, which includes board chairman Robin Denholm and director Kathleen Wilson-Thompson, has approved Musk’s new salary package plan.
The previous salary package has not yet been finalized and is pending for legal reasons. That is why the board of directors of the US electric car manufacturer Tesla has given Elon Musk a new share award worth about $29 billion.
Tha Tesla board has decided to give Musk, the company's CEO, an interim share award worth about $29 billion, according to a document released by the company on Monday.
According to Tesla’s documents, Musk will receive full ownership of the new shares after two years. By that time, he must be the company’s CEO or in a key position. And at the end of the case, if the court rules that Musk received the previous package, the new package will be canceled.
The old package was worth $56 billion.
Tesla's share price rose more than 2 percent on Monday after the news was released, according to the American media outlet CNBC.
In January, Delaware Chancellor Kathleen McCormick upheld her previous ruling in the 'Tornetta vs. Musk' case. That ruling said that Musk's 2018 CEO pay package was not properly approved.
The court also said in its decision that Tesla's board of directors tried to approve Musk's 2018 pay package by withholding important information from shareholders.
Musk started an anti-Delaware campaign and moved Tesla's registered address to Texas after the ruling was made public. Tesla, on the other hand, has appealed the ruling in the 'Tornetta' case. Tha Delaware Supreme Court is now looking at the case.
CNBC wrote that Musk owns about 13 percent of Tesla's total shares. He has a lot of power and control over the business.. How much control, or how much, should be there is a constant debate among shareholders and on the internet.
Musk said in January 2024 that he would make AI and robotics products outside of Tesla if he didn't get more control.
At the time, Musk wrote in a post on his social media platform X, “I want to make Tesla a leader in AI and robotics. But I won’t be comfortable with that unless I have 25 percent of the voting power in the company.”
Records from the Nevada government show that Musk established the AI startup "XAI" in March 2023. However, he did not tell Tesla shareholders about it.
The ‘XAI’ startup is now building AI products and data infrastructure for Musk’s other company, X, and is also working with Tesla. Musk has also added XAI’s chatbot ‘Grock’ to Tesla’s electric cars.
According to Tesla's financial filing, a "special committee" of Tesla's board of directors, including board chairman Robin Denholm and director Kathleen Wilson-Thompson, has approved Musk's new interim pay package as CEO. The plan will allow Musk to pursue his own independent business ventures or pursue his political career.
Meanwhile, Tesla plans to hold its next annual shareholder meeting in November.
