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Tesla is trying to lock down Elon Musk as CEO, offering him a stock package worth nearly $30 billion with strings attached
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The move comes as Musk fights a Delaware court ruling that voided his 2018 pay package, once valued at more than $50 billion
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The court threw it out in 2024, calling it unfair to shareholders
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Musk appealed, prompting Tesla to create a special committee to reassess his compensation
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According to CNBC, Musk currently holds a 13% stake in Tesla, and this new deal is meant to, quote, incentivize Musk to stay
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Financial ysts also say Tesla is trying to shift its image from a pure electronic vehicle maker
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to a broader tech company focused on AI, robotics, and autonomous vehicles
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Under the new plan, Musk must stay in a top leadership role through 2027 to cash in on the 96 million shares
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There's also a mandatory holding period for the stock. And there's a no double dip clause, meaning if his 2018 pay package is reinstated in court, this new deal gets reduced or voided
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Tesla shares are down about 25 percent this year as vehicle sales slow and federal EV subsidies shrink
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Brand loyalty has taken a hit, too. after Musk endorsed Donald Trump for president in 2024, then went on to lead Trump's government
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deficiency office, a controversial agency tied to widespread job cuts and budget slashes
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Musk has since quit the role amid a public falling out with Trump and is now vowing to start a third political party
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