In a bold move to retain Elon Musk during a pivotal shift in company strategy, Tesla has granted its CEO a new stock award valued at approximately $29 billion. This latest compensation package, announced by the company on Monday, comes at a time when Tesla is undergoing a significant transformation — shifting its core focus from electric vehicles to cutting-edge innovations in artificial intelligence, robotics, and autonomous mobility through its robotaxi initiative.

Under the newly approved award, Musk will receive 96 million shares of Tesla at a fixed price of $23.34 each — the same rate set in his original 2018 pay package. With Tesla’s stock currently trading well above $300, the potential value of the shares underscores the board’s continued faith in Musk’s long-term vision and leadership.

To claim this award, Musk must remain in a senior executive role at Tesla for a minimum of two more years. Additionally, the granted shares must be held for five years before they can be sold. According to Tesla’s board, the arrangement is an “interim” solution to acknowledge Musk’s contributions while legal efforts continue to reinstate the previously approved — but now-contested — $50 billion compensation plan from 2018. That plan was invalidated by a Delaware court and remains under appeal.

The timing of the new award is significant. Tesla has faced headwinds in recent months, including declining vehicle sales, intensified competition in the EV market, and public backlash tied to Musk’s political endorsements. Notably, his vocal support for U.S. President Donald Trump — particularly following an assassination attempt in Pennsylvania last year — has sparked protests and reportedly contributed to the loss of some EV tax incentives. As a result, Tesla’s customer loyalty and brand sentiment have taken a hit, with the company’s stock price falling 25% this year. However, shares ticked upward in premarket trading after news of the compensation package broke.

Despite the turbulence, Tesla’s board remains unwavering in its support of Musk. The company emphasized that Musk has not received any substantial compensation in the last eight years, highlighting the new award as a recognition of both past achievements and future potential. The board also confirmed that a more comprehensive, long-term compensation plan will be presented to shareholders for a vote in November.

Looking ahead, Musk has reassured stakeholders that he plans to dedicate more time to Tesla. This comes amid growing concern from investors regarding his multiple ventures, including his AI startup xAI. Tesla’s evolving focus on AI-driven technologies and autonomous transport solutions demands strong leadership, and the board views Musk as the best person to lead this transformation.

Tesla’s robotaxi service has already begun limited rollouts as part of its strategy to expand beyond slowing EV sales. While the scale is currently smaller than initially promised, the company sees this as a foundational step toward broader adoption.

By locking in Musk with this substantial stock incentive, Tesla is signaling confidence in its CEO and its future beyond traditional car manufacturing.