Tesla has awarded CEO Elon Musk a massive $29 billion (£21.7bn) stock grant, a strategic move aimed at securing his leadership as the company navigates the intensifying competition for AI talent.
This comes after a Delaware court voided Musk’s controversial 2018 compensation package worth over $50 billion deeming it "unfair to shareholders." Tesla is actively appealing the ruling, expressing confidence that this new stock award will ensure Musk’s continued commitment to the company.
"The war for AI talent is intensifying, and it's imperative to retain and motivate our extraordinary talent, beginning with Elon," Tesla’s board stated in a post on X (formerly Twitter), the platform Musk himself owns. They emphasized Musk’s "unmatched combination of leadership, technical expertise and a proven track record in building revolutionary and profitable businesses."
The fresh share award is designed not just to incentivize Musk, but also to bolster his voting power on Tesla’s board as the company transitions from an electric vehicle manufacturer to a technology powerhouse focusing on AI and robotics.
Tech giants are fiercely competing for top AI talent. Facebook’s Mark Zuckerberg has reportedly offered multi-million-dollar deals to lure developers away from OpenAI, the creator of ChatGPT. Similarly, Microsoft’s AI division, now led by former Google DeepMind co-founder Mustafa Suleyman, has recently attracted several key hires from Google.
Tesla described itself as being at a critical "inflection point," needing Musk’s vision and technical prowess to steer the company through its next phase of innovation. The board noted that the share package is designed to capture Musk’s attention amidst his commitments to other ventures, including xAI, Neuralink, and The Boring Company.
Musk has recently signaled a step back from political advisory roles, including his previous stint as an advisor to former President Donald Trump, to refocus on his business ventures.
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