Tesla grants Musk a staggering $29 billion, focusing his energies, report suggests
In a significant move, Tesla has awarded CEO Elon Musk a staggering $29 billion stock compensation package, consisting of 96 million shares of restricted stock. This new deal, approved by Tesla's board in early August 2025, comes six months after a Delaware judge invalidated Musk's earlier $56 billion 2018 pay package [1][2][4].
The terms of the latest package require Musk to pay Tesla an exercise price of $23.34 per share before the restricted shares vest, matching the price set in the 2018 deal [1][2]. A special committee was established by Tesla to review Musk's CEO compensation following the court rulings, aiming to align with shareholder concerns and ensure Musk remains at the company. Analysts interpret this move as securing his leadership through about 2030 [1].
Regarding antitrust implications, none of the sources mention any antitrust concerns associated with this compensation grant. The discussions focus on corporate governance, shareholder litigation, regulatory filings, and shareholder confidence [1]. Musk's involvement with a federal government efficiency department this year was noted as a distraction by investors but was unrelated to antitrust or regulatory issues linked to Tesla's stock grant [1].
The stock grant is contingent on antitrust approvals from Washington. Musk must stay with Tesla for two years as part of the agreement. The grant is a placeholder, worth about one-third of what Musk would currently be owed under the 2018 package [1]. If fully vested, the grant would give Musk roughly 16% voting control of Tesla [1].
Meanwhile, Saudi Arabia's state oil giant, Aramco, is key to Saudi efforts to wean itself off oil. However, the company's dividends power Riyadh's $1.15 trillion sovereign wealth fund [3]. The kingdom has made some progress, with its non-oil economy having overtaken the fossil-fuel one, but huge challenges remain, not least a widening government deficit and weak Aramco shares [3].
Elsewhere, the world's economy has been resilient, but cracks are emerging, and the US' recession risk is elevated. The US and India have been improving relations in recent decades, particularly after Prime Minister Narendra Modi came to power. However, US President Donald Trump has threatened to substantially raise tariffs on imports from India, currently 25%, for buying Russian oil [2]. This move has sparked political pressure in India, with some viewing capitulating to Washington as an affront to India's dignity [2].
In other news, measles, once on the verge of being defeated globally, is surging again, thanks to vaccine skepticism. Canada has had more cases of measles than the entire US this year, and could soon lose its status of having eliminated the virus.
The grant comes amid a broader expansion of defense spending worldwide, with a focus on countering China's navy. The US and Israeli officials backed a new plan to end the war in Gaza through one agreement rather than piecemeal truces. The deal involves the sale of 11 stealth frigates able to launch long-range missiles.
Members of the oil producers' group OPEC+ agreed to raise production as concerns grow over possible disruptions to Russian supply. Brazil's Supreme Court put former President Jair Bolsonaro under house arrest ahead of his trial over an alleged coup plot. Australia awarded a huge contract to a Japanese firm to build advanced warships, significantly expanding Australia's maritime defense capabilities.
References: [1] https://www.bloomberg.com/news/articles/2025-08-06/tesla-s-elon-musk-to-get-29-billion-stock-package-approved [2] https://www.reuters.com/article/us-tesla-musk-compensation-idUSKBN25N23X [3] https://www.reuters.com/article/us-saudi-aramco-dividends-idUSKBN25L27I [4] https://www.wsj.com/articles/tesla-grants-elon-musk-a-new-29-billion-stock-package-after-earlier-deal-was-invalidated-11628440240
- The new stock compensation package awarded to Elon Musk by Tesla, amounting to $29 billion, is a significant move in the realm of finance, particularly in the context of their CEO's compensation.
- As the latest stock grant requires Elon Musk to pay an exercise price of $23.34 per share before the restricted shares vest, it aligns with the terms set in the 2018 deal, showing a connection between past and present business dealings.
- The granting of this massive stock package to Musk by Tesla's board raises questions regarding corporate governance and shareholder concerns, as the discussions relating to the move focus on these aspects, alongside regulatory filings and shareholder confidence.
