🕒 Last updated on August 4, 2025
Tesla, the famous electric car company, has made a bold move. A huge bundle of 96 million shares has been negotiated to be given to its top executive. This deal is worth around $30 billion.
Tesla’s Big Decision
The person at the center of this big news had earlier warned that he might leave the company if he wasn’t given more stock. That threat seems to have worked. Tesla’s board has now approved the deal.
This huge decision came just a few weeks after Tesla reported weak financial results. Many people in the market had started to worry. But now, the focus has shifted. The special deal was made by a committee of only two board members. These two were part of a special group formed just to look at this stock issue. They decided it was best to approve the package. Their goal? To make sure the company’s chief executive stays with Tesla.
The board believes his presence is very important. In fact, Tesla sent a message to shareholders saying that keeping him at the company is more crucial than ever before.
A Package Once Blocked
This new stock deal is not the first of its kind. A few years ago, Tesla had approved another giant pay package. That earlier deal would have been the largest ever in U.S. corporate history. But in early 2024, a judge in the state of Delaware stopped that earlier package. The judge said the process was not fair and lacked proper checks. That decision was a big blow to both Tesla and its top executive.
But the company did not give up. They are now trying to get that earlier decision overturned. They have gone to the Delaware Supreme Court. If that court allows the earlier package again, then this executive could see his Tesla ownership grow from under 13 percent to more than 20 percent. That would give him even more control over the company.
For now, Tesla’s board has decided to act fast. They do not want to take chances. The new deal of 96 million shares is their way of making sure the company’s leader doesn’t walk away.
Why the Rush?
So, why is Tesla acting so quickly and offering such a large stock reward? The answer lies in fear. The company does not want to lose its most important leader. After disappointing results last month, tensions have been high. The chief executive made it clear he wanted more control. He even said he might start focusing on other companies or projects if his demands weren’t met.
☢️ War hits nuclear nerve — IAEA confirms explosions close to Zaporizhzhia power facility
That put the Tesla board in a tight spot. Without him, they feared the company might suffer. The board believes he brings innovation, leadership, and bold ideas that no one else can replace. That’s why they agreed to the new $30 billion stock award.
The two members of the board’s special committee acted quickly. They reviewed all facts and decided that granting more shares was the best path forward. By doing this, they hope to stop any further talk of him leaving Tesla.
Even though some investors are worried, the board is standing firm. They believe that keeping the top boss happy is more important than the cost of the shares. The company made its reasoning very clear in the letter sent to all shareholders. In short, they feel the future of Tesla depends on one person—and they are willing to pay a big price to keep him on board.