Tesla grants Elon Musk a $30 billion stock plan to prevent his departure, increasing his stake in the company from 13% to 16%.
This decision comes after a previous $56 billion plan was canceled by the court, reigniting tensions surrounding his power.
Tesla is going through a critical phase: declining sales, a break with the Trump administration, and a strategic shift towards AI and robotaxis.
An Ultimatum of $30 Billion
Tesla has just offered Elon Musk a whopping $30 billion in stocks. Yes, $30 billion. This amount was approved by the board to retain a CEO who, without it, simply threatened to leave. At stake: 96 million shares that would increase Musk’s stake in Tesla from 13% to 16%.
It’s not a bonus, it’s a message: without Musk, Tesla loses its soul. The decision was driven by a special committee composed solely of chairwoman Robyn Denholm and director Kathleen Wilson-Thompson, then approved by the board. In short: everything was done to speed up and secure the deal.
A Legal Battle in the Background
Behind this mega-package lies a 7-year-old war. In 2024, the Delaware court cancelled a previous $56 billion compensation plan, the largest in American history. Judge Kathaleen McCormick deemed it abusive, denouncing Musk’s excessive influence over the board members.
Far from deterred, Musk has ramped up the pressure. On several occasions, he mentioned his possible departure if his power within Tesla was not consolidated. During a recent call with investors, he stated:
I want enough control to steer Tesla, but not so much that I can’t be fired if I go crazy.
A Strategic Bet in an Uncertain Context
Why this decision now? Because Tesla is struggling. Sales are declining, the image in Europe is fading, and the company is finding it hard to reassure amid President Trump’s anti-EV policies. Musk, who briefly worked with the administration, abruptly cut ties with it early in 2025.
Simultaneously, Tesla is changing course: focusing on artificial intelligence and autonomous robotaxis. An ambitious shift that requires recruiting top talents. And according to the board, keeping Musk is essential to achieve this.
The Deal in Numbers
To receive the new bonus, Musk must pay the company $23.34 per restricted stock unit at the time of acquisition, which, according to the company, corresponds to the exercise price per share of the 2018 bonus. If the Delaware Supreme Court eventually reinstates the canceled plan, Musk would exceed 20% ownership in Tesla… and waive this new bonus.
Meanwhile, the market seems to approve: Tesla’s stock rose 2% at the opening.
Daniel Ives, an analyst at Wedbush, sees it as a relief:
This plan dispels uncertainty and locks Musk at the helm of Tesla until at least 2030.
A Risky Dependence
Musk remains Tesla’s number one asset. But this dependence comes at a cost. Between legal pressures, political tensions, and disappointing performance, the strategy of ‘all on Elon’ is a risky gamble. The board is going all-in, hoping that yesterday’s genius will once again become tomorrow’s engine.
