Tesla stock today is trading slightly higher after the company granted CEO Elon Musk $29 billion in stock, aiming to retain him amid mounting pressure from investors, regulators, and shareholders.
Tesla shares climbed nearly 2% in midday trading on Monday following the announcement, which arrives during a turbulent year for the electric vehicle maker.
Tesla’s $29B move to keep Musk at the helm
In a regulatory filing released Monday, Tesla awarded 96 million restricted shares to Musk as a “good faith” effort to retain him through 2030. The company cited Musk’s role in generating $735 billion in market value since 2018, calling the grant a reward for “transformative and unprecedented” leadership.
“Rewarding Elon for what he has done and continues to do for Tesla is the right thing to do,” Tesla wrote in the filing.
The decision follows the court-ordered cancellation of Musk’s previous $56 billion compensation package earlier this year, which was ruled to have been orchestrated through sham negotiations with a non-independent board.
Legal overhang and financial decline
While Tesla has appealed the court decision, the stock has plummeted 25% year-to-date, fueled by:
- Musk’s controversial political involvement, including ties to President Trump
- Declining sales and rising EV competition from Detroit and China
- Investor anxiety over leadership focus, as Musk splits time with SpaceX and xAI
In the most recent quarter:
- Net income fell from $1.39 billion to $409 million
- Revenue declined, missing already-lowered Wall Street expectations
Musk’s net worth tumbles, and risk of losing richest title grows
The financial chaos has taken a toll on Musk personally. According to recent reporting, he’s lost $80 billion from his net worth this year. Another sharp drop in Tesla shares could cost him his position as the world’s richest person.
Still, some analysts view Monday’s announcement as a stabilizing move.
“We believe this grant will now keep Musk as CEO of Tesla at least until 2030 and removes an overhang on the stock,” said Dan Ives, Wedbush analyst.
What’s next for Tesla stock?
Tesla plans to hold its annual shareholder meeting in November, after pressure from over 20 investors demanding better governance and transparency. With the future of Musk’s role still hanging in legal limbo, the meeting could become a flashpoint for investor sentiment.
For now, the market appears cautiously optimistic, with today’s modest rally offering a reprieve — but not a resolution.
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