(Image source from: Timesofindia.indiatimes.com)

Tesla has given its CEO Elon Musk a new compensation package valued at approximately $29 billion, according to Reuters. The company is providing him with 96 million shares in a recent effort to keep him in charge, especially while he faces legal issues regarding his previous pay agreement. Back in 2018, Tesla had vowed to grant Musk a massive $50 billion compensation package if he fulfilled specific performance targets. However, earlier this year, a court in Delaware annulled that agreement, stating that the company’s board did not adequately protect shareholders when they approved it. Musk disagreed with the verdict. He contested the ruling in March, claiming that the judge made multiple errors in legal judgment. In the meantime, Tesla discreetly established a special committee to figure out how to manage Musk’s pay in the future.

Tesla indicates that the new issuance of shares aims to ensure Musk remains dedicated to the company. The board acknowledged that Musk has various other enterprises to oversee, but they believe this new agreement will encourage him to be committed to Tesla’s direction. Musk already possesses around 13% of Tesla. This new grant could potentially increase his voting influence in the long run, which he and other investors view as crucial for keeping the company on course. Tesla’s focus has expanded beyond simply electric vehicles. Musk has recently shifted away from a previously promised budget-friendly EV model and is now concentrating more on areas like robotaxis and humanoid robots. His ambition is to transform Tesla into more of a technology and AI enterprise rather than just an automobile manufacturer. Meanwhile, Musk will not receive the shares for nothing. He is required to pay $23.34 for each share as they are made available to him, which matches the price from his earlier 2018 agreement.