Tesla’s New Salary Package for Elon Musk: Big Money, Bigger Control for the World’s Richest Man

American automaker Tesla has approved a renewed compensation package for CEO Elon Musk, valued at approximately $29 billion and comprising 96 million shares of the company.

The move aims to ensure Musk, the world's richest man, remains focused on Tesla’s long-term goals. Notably, this comes after a previous $50 billion pay deal from 2018—contingent on performance milestones—was struck down by a Delaware court, which ruled that the board had failed to adequately safeguard shareholder interests during its approval.

While the new package is less lucrative than the earlier deal, it significantly boosts Musk’s voting power in the company. Musk currently owns around 13% of Tesla.

In a message to stakeholders, Tesla board members Robyn Denholm and Kathleen Wilson-Thompson stressed the importance of retaining Musk, especially as competition intensifies in the artificial intelligence (AI) sector. They noted that rival companies are offering substantial cash incentives and acquiring businesses to secure top AI talent.

The board emphasized that Musk’s leadership is critical to Tesla’s evolving future, particularly as the company shifts beyond electric vehicles toward AI-driven innovations like robotaxis and humanoid robots. Musk has also scaled back plans to launch a low-cost EV, signaling a broader pivot to technology and autonomy.

Noting Musk’s involvement in other ventures like SpaceX and X (formerly Twitter), the board wants him to stay fully committed to Tesla’s transformation into a tech and AI powerhouse. Several investors have backed the decision, citing Musk’s vision and strategic direction as pivotal to Tesla’s continued success.