A $29 Billion Jackpot for Musk Despite Tesla’s Setbacks
This page is translated from the original post "Un jackpot à 29 milliards pour Musk malgré les revers de Tesla" in French.

Despite a turbulent context, Elon Musk has just been granted a new spectacular compensation plan from Tesla.
Tesla’s board of directors has approved a package estimated at $29 billion for its CEO, making it one of the largest ever awarded in the business world.
This stock-based compensation plan comes after the previous one, dating from 2018, was annulled twice by a Delaware court following a shareholders’ lawsuit. Tesla continues to contest this decision in court, with no clear timeline for resolution at the moment. In a letter to shareholders, the automaker justifies this reward by emphasizing that Musk has not received any substantial compensation for eight years and has largely met the objectives of the 2018 plan.
Specifically, this new plan would allow Musk to acquire 96 million Tesla shares at the originally set price of $23.34 per unit. This is a nominal fee compared to their current price, $303.62 at the time of writing. This compensation structure, without a fixed salary or bonuses, relies solely on stock options. Musk, who already holds 13% of Tesla, remains strongly incentivized to increase the company’s value.
Tesla still needs Elon Musk
However, this announcement comes at a delicate time for the automaker. Tesla has had a tough year with declining sales, a stock that has dropped by 25%, and a seriously tarnished image due to Musk’s antics! The billionaire’s involvement in the Republican campaign, while politically fruitful, has sparked protests, notably in front of Tesla’s dealerships. Additionally, President Donald Trump’s domestic policy has reduced tax incentives for electric vehicle purchases, directly affecting Tesla.
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In the face of these turbulences, Musk has promised to refocus his efforts on his companies, particularly Tesla, which he intends to transform. The company is now aiming for artificial intelligence and robotics, with the launch of its robotaxi service, which is much less ambitious than initial announcements but symbolizes a strategic shift.
With this new compensation plan, Tesla aims to keep Musk at the helm. It remains to be seen if the magic will work again.
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