After many months of plummeting sales and disastrous earnings, Tesla has awarded its controversial CEO a whopping $29 billion worth of its shares in a bid to keep him at the helm of the carmaker.

After a Delaware judge threw out his astronomical pay package last year, which was worth $56 billion at the time, shareholders are terrified that his incredibly damaging leadership could soon come to an end.

While continuing to attempt to get the pay package reinstated, the board granted him a "good faith" effort in "96 million restricted shares of stock" — worth just under $29 billion at the current share price — as a "first step," according to a lengthy and gushing statement to shareholders by the company's board.

"It is imperative to retain and motivate our extraordinary talent, beginning with Elon," the statement reads. "The war for AI talent is intensifying, with recent months including multi-billion-dollar acquisitions of companies and nine-figure cash compensation packages for non-founder, individual AI engineers."

In other words, the board is seemingly worried that the richest man in the world isn't getting his fair share and could walk.

"As you know, Elon has not received meaningful compensation for eight years since the 2012 CEO Performance Award was last earned in 2017," the statement reads. "Despite overwhelming support from you in 2018 and again in 2024, our legal efforts continue in the Delaware courts to reinstate the 2018 CEO Performance Award. "

Musk's original pay package "continues to be in legal limbo despite two separate shareholder votes supporting it by large margins," the board wrote. "Furthermore, we have no clear timeline for resolution, as we are still waiting not only for a ruling."

It's a baffling development, considering the current state the carmaker finds itself in. Sales continue to tank across the world, largely the result of Musk's own actions and his infamous embrace of far-right ideologies that have alienated vast swathes of former customers and fans.

Even the company's eleventh-hour refresh of its Model Y SUV has done little to inject life into a greatly tarnished brand.

The news comes after Musk conceded that his 13 percent ownership stake in the company leaves him vulnerable during the company's second-quarter earnings call, arguing that his "control over Tesla, Inc. should be enough to ensure that it goes in a good direction, but not so much control that I can't be thrown out if I go crazy."

The mercurial CEO threatened after the Delaware judge threw out his pay package in January 2024 that he was "uncomfortable" with building AI products and robots with Tesla without having a "25 percent voting control" — comments that were tantamount to "blackmail," according to critics.

Since then, Musk's Tesla has started shifting gears, pouring its resources into the development of a robotaxi service and a humanoid robot. However, major growing pains could leave a return on investment well out of reach within the next months or even years.

But that major pivot has shareholders and the company's board reinvigorated. The company's shares are up around six percent over the past month, following plenty of uncertainty as Musk's relationship with president Donald Trump exploded spectacularly.

Case in point, shares jumped when trading resumed on Monday by three percent.

The board's statement warned that Tesla is in a "critical inflection point," arguing that "energizing and focusing Elon on Tesla" is the top priority.

The "interim award" is "structured to incrementally increase his voting rights upon grant" to incentivize the mercurial billionaire and keep him focused.

Musk has repeatedly been accused of having been distracted during his stint overseeing the gutting of the federal government. Will a cushy payday be enough to appease the billionaire and convince him to keep his head down as Tesla navigates a crisis of his own making? Musk spent much of the weekend retweeting and responding to lewd, AI-generated images and videos of anime women, as well as racist conspiracy theories — but hasn't commented on the board's "good faith" offer yet.

More on Elon Musk: These Behind-the-Scenes Emails From Tesla Meekly Begging the State of California to Allow Its Horrible Robotaxis Are Unintentionally Hilarious


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