Yearning for earnings? Check out Public.com, the investing platform for serious traders. You can build a multi-asset portfolio of stocks, bonds, options, crypto, and more. Access industry-leading yields like the 4.1% APY* so you can earn on your cash with no fees or minimums.
Like promising a toddler a lollipop if they sit through storytime without screaming, the Tesla board is luring Elon Musk back to work by waving billions of dollars in front of the CEO’s nose.
Tesla rose 2.19% after its board of directors approved an interim pay package worth $29 billion. That includes 96 million shares of Tesla common stock, which means when the package fully vests in August 2027, Musk would own a total of 506,794,076 shares worth just over $153 billion. The board, which is made up of Musk’s brother and other close allies, attached few strings to the compensation, though the package will only vest if Musk remains in a senior leadership position at the company for the next two years.
The hope is that the massive award will convince Musk to focus on the success of Tesla instead of his sprawling political aspirations. Elon’s stint in the Trump White House catalyzed a rough year for Tesla, and investors are hoping the executive will turn now to creating new robots instead of new political parties.
“We believe this grant will now keep Musk as CEO of Tesla at least until 2030 and removes an overhang on the stock,” explained Wedbush analyst Dan Ives. “With the AI talent war now fully underway across Big Tech, we believe this was a strategic move to keep TSLA’s top asset, Musk, stay focused at the company with his priority being to bolster the company’s growth strategy over the coming years.” Ives, who is a massive Tesla bull, reiterated his $500 price target and his “outperform” rating on the stock.
Don’t forget: This latest mammoth pay package arrives even as the lengthy saga over Musk’s $56 billion 2018 stock compensation remains unresolved. The compensation deal inspired backlash and raised scrutiny from institutional investors, but was ultimately greenlit by Elon devotees shareholders in June 2024. Last year, however, it was struck down by a judge. If the Delaware supreme court upholds the original pay package, this newest one will be void.
A giant reward for a rough year
Tesla’s board is understandably desperate to get Tesla out of its slump. Shares have sunk 23.42% in 2025, far underperforming the S&P 500’s gain of 7.62% during the same time period.
Tesla’s board is betting that Musk is the answer to their problems, but in many ways he contributed to the EV-maker’s struggles: Sales slumped in the wake of boycotts of Tesla cars to protest the CEO’s position within the Trump administration. Potential car buyers likely won’t forget Musk’s political antics any time soon.
There’s one other big problem with the plan for the pay package to stifle Elon’s politics: It relies on Musk doing what other people want him to.—LB