Reddit Tesla’s board has approved a major interim CEO award worth approximately $29 billion to retain Elon Musk through 2027 as a legal battle continues over his voided 2018 performance package. This grants 96 million restricted shares at an exercise price of $23.34 per share, mirroring the terms of the original 2018 deal, and will vest only if Musk serves in a senior executive role for two more years. Tesla’s board emphasised that Musk has not received meaningful compensation since 2017, despite delivering transformative growth that added around $735 billion in market value following the original award’s milestones. The interim package was unanimously approved by the board, with Musk and his brother Kimbal recusing themselves, based on the recommendation of a special committee chaired by Robyn Denholm and independent director Kathleen Wilson‑Thompson. Tesla sees Musk’s leadership as critical as it pivots into artificial intelligence, robotics and robotaxi services. The award is meant as a show of good faith to honour the compensation agreement struck in 2018, even though a Delaware judge invalidated the original deal last year. Musk and Tesla are appealing that decision at the Delaware Supreme Court. If the courts fully reinstate the 2018 CEO performance award, this interim grant will be forfeited or scaled back to prevent Musk from receiving double compensation. Under the terms of the interim plan Musk must remain in a senior leadership role until at least August 2027. He also cannot sell any shares for five years—except to fund the purchase price or pay taxes—and the holding period can only be broken under managed conditions. A Letter to Our Shareholders on the 2025 CEO Interim Award Dear Fellow Tesla Shareholders, Today we announce an important first step in compensating Elon Musk for his extraordinary work at Tesla. As you know, Elon has not received meaningful compensation for eight years since… — Tesla (@Tesla)