Tesla CEO Elon Musk Awarded 96 Million Shares of Restricted Stock Worth $29 Billion

In a surprising turn of events, Tesla has decided to award CEO Elon Musk 96 million shares of restricted stock, valued at approximately $29 billion. This move comes just six months after a judge ordered the company to revoke Musk’s massive pay package.

According to a regulatory filing made by the electric vehicle maker on Monday, Musk will need to pay Tesla $23.34 per share of restricted stock that vests. This amount is equal to the exercise price per share of the 2018 pay package that was initially awarded to the company’s CEO.

The decision to grant Musk this substantial stock award comes after Delaware Chancellor Kathaleen St. Jude McCormick reaffirmed her earlier ruling that Tesla must revoke Musk’s multibillion-dollar pay package. She found that Musk had engaged in sham negotiations with directors who were not independent.

In addition to revoking Musk’s pay package, the judge also rejected a fee request by plaintiff attorneys, who were seeking legal fees in the form of Tesla stock valued at more than $5 billion. Instead, the attorneys were awarded a fee of $345 million.

The lawsuit challenging Musk’s 2018 compensation package, which had a potential maximum value of about $56 billion, has been a source of ongoing legal battles and controversy.

Despite the legal challenges, Tesla’s stock has seen a 2% increase following the announcement of Musk’s stock award. Analysts believe that this grant will help alleviate shareholder concerns and ensure Musk’s continued leadership at Tesla until at least 2030.

While Tesla faces intensifying competition in the electric vehicle market, including pressure from big Detroit automakers and Chinese competitors, Musk’s leadership and vision remain crucial to the company’s success.

With Musk’s stock award in place, Tesla shareholders can now look forward to a more stable future for the company, free from the uncertainties surrounding Musk’s compensation package.