Tesla has granted CEO Elon Musk 96 million shares worth $29 billion to retain his leadership amidst legal challenges. Musk is appealing a court ruling that voided his original pay deal, deemed unfair to shareholders. Tesla’s stock rose over 2% in premarket trading.

In 2024, a Delaware court invalidated Musk’s 2018 compensation package of over $50 billion, citing flawed board approval. Musk is appealing the decision, alleging legal errors in rescinding the record compensation. Earlier this year, a special committee was formed to address Musk’s compensation matters.

As Tesla shifts focus from affordable EVs to robotaxis and humanoid robots, Musk’s 13% stake in the company is crucial. The special committee believes the award of shares will motivate Musk to remain at Tesla. The award is structured to gradually increase Musk’s voting power, aligning with shareholders’ desire to keep him engaged in Tesla’s mission.

Read more at Yahoo Finance: Tesla approves share award worth $29 billion to CEO Elon Musk