Key Facts
• Tesla plans to award Elon Musk $296 billion in restricted stock by 2027.
• The compensation equals 96 million shares, valued at approximately ¥4.36 trillion.
• The proposal aims to retain Musk amid declining EV sales and stock performance.
• Approval is expected after a shareholder vote in November 2025.
• The plan could strengthen Musk’s voting power within Tesla.
• A 2018 compensation package worth $560 billion faced legal challenges for being “excessive.”
• In January 2025, a Delaware court invalidated the 2018 package.
• Musk has appealed the court’s decision, with the case ongoing.
Summary
Tesla has proposed a $296 billion stock compensation package for CEO Elon Musk, equivalent to ¥4.36 trillion, to ensure his leadership through 2027. This plan, contingent on shareholder approval in November 2025, seeks to address challenges like declining EV sales and stock performance while potentially increasing Musk’s voting power. However, Tesla faces scrutiny over Musk’s past compensation, including a $560 billion package from 2018, which was invalidated by a Delaware court in January 2025. Musk has appealed the ruling, and the legal dispute continues.
