Tesla awarded Musk millions of shares worth about $29 billion

Tesla's board of directors has granted CEO Elon Musk 96 million restricted shares worth about $29 billion as a reward for years of "transformational and unprecedented" growth.

Here's What We Know

The electric car company noted that Musk had not been paid for several years because his 2018 compensation package was rejected by a Delaware court. The award comes eight months after a judge struck down the 2018 compensation package for the second time. Tesla has appealed the decision.

On Monday, Tesla called the award "a first step, a show of goodwill" to retain Musk and keep him focused, citing his leadership at SpaceX, xAI and other companies. Musk recently said he wants more equity and control so he can't be ousted by activist shareholders.

"Rewarding Ilon for what he has done and continues to do for Tesla is the right thing to do," the company said in a regulatory filing, citing Tesla's $735 billion increase in stock market value since 2018.

What the company fails to mention is that its shares have fallen 25 per cent this year, largely due to negative reaction to Musk's association with US President Donald Trump. It also faces increasing competition from rivals, including China.

In its latest quarterly report, Tesla reported a drop in profit from $1.39 billion to $409 million. Revenue also fell, and the company failed to meet even Wall Street's lowered expectations.

Source: AP