A billion dollars of adrenaline for the tech industry’s most audacious CEO
In the era of speedsters, faster rockets, and the fastest tweets, Elon Musk just won a giant victory. On Monday, Tesla officially rewarded its attention-seeking CEO with a new compensation deal valued at an astonishing $29 billion. That’s right — with a “B”.
This jaw-dropping compensation package in the form of 96 million Tesla shares isn’t exactly a payday, as such. It’s a bet on high risk by the company to keep Musk at the wheel as Tesla enters new and uncharted territories of robotaxis and humanoid robots.
And yes, it’s very Musk — flashy, space-age, and controversial.
The 2018 deal that lit up a legal storm
To understand how wild this story is, we must travel back to 2018. That year, Musk brokered a record $50+ billion compensation package — the biggest corporate pay package in history. It was a performance contract: achieving market caps, profitability, and making Tesla a behemoth.
And, according to many measures, he did deliver. Tesla Shot Up in value, became a household name, and made Musk the wealthiest person on the planet for a time.
But earlier this year, a Delaware judge threw that deal out, deeming it to be unfair to shareholders. Overnight, Musk’s entire compensation package evaporated, inciting lawsuits, appeals, and boardroom soap operas.
Now, Tesla is fighting back—with a “good faith” interim award aimed at keeping Musk in a good mood while the court fight over the 2018 plan continues.
The new deal: What Musk gets (and doesn’t)
So what exactly does the new $29 billion plan mean?
Here’s the catch: Musk doesn’t get the money right away. He must still be a senior Tesla executive after another couple of years to vest the shares — and the 2018 package must still be worthless (the appeal is pending).
Nevertheless, he can’t just offload the stocks and be gone. Musk has to retain the stocks for five years, and he has to buy them back at $23.34 per share — the same as with his 2018 bid.
If he holds on and the stock performs, Musk is set to reap tens of billions, growing his Tesla stake from 12.7% to 15%, cementing his grip further on the company he co-founded.
This isn’t about money. It’s about control, vision, and influence.
Why Tesla is betting big on Musk again
Why is Tesla going so far out of its way — again — for Elon?
Simple: Musk is Tesla. He’s the face. He’s the visionary of the car design, autonomous driving vision, and robot apocalypse that Tesla is now after.
As Tesla transforms from just electric cars to robotaxis and AI, the board believes Musk is still the most suitable leader to guide the transformation.
Despite mounting questions regarding his political stances, ongoing public scandals, and his involvement in other business ventures like SpaceX, Neuralink, and xAI, the company is keeping their guy — at least for now.
They don’t want to lose him either. Musk has said he wants more control and has warned that he will leave Tesla if he does not get it.
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Critics, controversy, and a hint of MAGA
Of course, not everyone is cheering from the stands.
Musk’s ever-more-politicised profile—such as support for Donald Trump, sightings of MAGA gear, and public statements of backing a new political party—has alarmed some shareholders.
They worry Tesla is losing its magic. Electric vehicle sales have slowed, competition is intensifying, and the company hasn’t introduced a game-changing new car recently.
And meanwhile, Musk’s other enterprises are pining for his attention — xAI is growing fast, and SpaceX is launching rockets at record intervals.
Nevertheless, Tesla’s board believes that there’s no one else available to perform the magic that Elon does — and this merger is their latest bid to ensure he stays on board.
What’s next for Tesla and its billionaire CEO?
This isn’t merely about payday number one. The “interim award” is merely one aspect of an overall game plan. Tesla has already indicated it will propose a new, long-term compensation plan to Musk at the November 6 shareholder meeting.
That reward may be even greater, and it will certainly face withering fire. Shareholders will have to vote: Is Elon Musk worthy of another blockbuster payday?
At the same time, Tesla’s agenda is ambitious. Tesla has plans to:
Launch its robotaxi service as soon as possible
Develop its line of humanoid robots, which Musk said will revolutionize work
Develop autonomous driving software, still in bureaucratic purgatory
Revive electric vehicle sales momentum as new players flood the market
And in charge of it all? The guy in the black T-shirt, tweeting memes, launching satellites into space, and looking at Mars.
A wild ride into the future
Tesla just gave Elon Musk a second golden ticket. Will he cash it in to change the world of transportation a second time? Or will the soap opera off the road ruin the mission?
Either way, buckle up. With Musk back in charge — and a $29 billion incentive hung out as bait for him — the next chapter of Tesla is going to be a bumpy ride.
