Elon Musk Secures $29 Billion Tesla Pay Package as Company Battles Sales Slump and Political Fallout

Tesla CEO Elon Musk has been awarded a staggering $29 billion pay package, a move that has reignited debates about executive compensation, corporate governance, and Musk’s controversial foray into politics.

Announced in a shareholder letter on Monday, the package grants Elon Musk 96 million Tesla shares, each priced at $23.34 — the same terms as his disputed 2018 performance award. This comes despite a Delaware court recently rejecting Elon Musk’s earlier pay package after a shareholder lawsuit, a ruling Tesla is actively appealing. The board insists that Musk has “not received meaningful compensation for eight years” and is determined to reinstate his 2018 compensation, though there’s “no clear timeline for resolution.”

Board members Robyn Denholm and Kathleen Wilson-Thompson praised Musk’s leadership, stating, “Elon has delivered transformative and unprecedented growth, meeting all the milestones required to earn the 2018 CEO Performance Award.”

Elon Musk, who doesn’t draw a cash salary or bonuses from Tesla, earns through large stock option packages, which allow him to purchase Tesla shares at a fraction of their market value. He remains the company’s largest individual shareholder, holding approximately 13% of the company.

However, this latest pay award comes at a turbulent time for Tesla. The company has faced mounting criticism from shareholders over Elon Musk’s increasing involvement in political campaigns. In recent months, Musk has funneled significant resources into supporting Republican candidates, a move that has backfired commercially. Protests erupted at Tesla dealerships nationwide, and the company’s sales have plummeted.

A Letter to Our Shareholders on the 2025 CEO Interim Award

Dear Fellow Tesla Shareholders,

Today we announce an important first step in compensating Elon Musk for his extraordinary work at Tesla. As you know, Elon has not received meaningful compensation for eight years since…

— Tesla (@Tesla) August 4, 2025

President Donald Trump’s new domestic policies, which eliminate tax incentives for electric vehicle purchases and regulatory credits — critical revenue streams for Tesla — have further compounded the company’s challenges.

Tesla’s stock has plunged by 25% year-to-date, although it saw a modest 3% rebound in premarket trading following Monday’s announcement of Elon Musk’s pay package.

Under pressure from investors, Elon Musk recently pledged to refocus his attention on Tesla full-time. The board hopes that this lucrative pay deal will tether Musk’s attention to steering the company through its current slump.

Tesla’s $4.20 Robotaxi Launches in Austin as Elon Musk Kicks Off Driverless Ride Revolution

Elon Musk is now attempting to pivot Tesla’s identity from an electric vehicle manufacturer to a technology-driven powerhouse in AI and robotics. The company’s robotaxi initiative, once touted as a revolutionary service, is rolling out in a far more scaled-back version than Musk had promised.

“Elon’s vision is to transition Tesla from an EV and renewable energy leader to the forefront of AI, robotics, and next-generation services,” the shareholder letter emphasized.

While Elon Musk’s pay package is designed to incentivize long-term growth, it comes at a precarious moment as Tesla navigates the intersection of political backlash, declining sales, and an aggressive shift in business strategy. Whether Musk’s $29 billion windfall will reignite Tesla’s dominance or deepen its current struggles remains to be seen.