Elon Musk Receives 29 Billion USD in Tesla Stocks to Promote Changes in AI and Robotics

According to Reuters, Tesla has just awarded CEO Elon Musk a stock worth 29 billion dollars. This amount is intended to help him continue to lead the company as it shifts its focus from the slowing automotive business to AI and robotics. This event takes place at a crucial time when Tesla's core electric vehicle business is losing momentum. To maintain its leadership, Musk is steering the company towards bold new projects, including robot taxis and humanoid robots, areas that he claims will shape the future of Tesla. The Board of Directors Supports Musk's Vision The Tesla board of directors posted on X, emphasizing the importance of retaining and motivating top talent, starting with Elon. They praised his unique combination of leadership and technical skills, calling him "the builder of revolutionary and profitable companies." Where Does the Stock Grant Come From? The $29 billion stock bonus is part of the 2018 pay agreement, aimed at rewarding Elon Musk for achieving major goals such as increasing the value and revenue of Tesla. A judge blocked this plan earlier this year due to concerns about fairness, but shareholders have now voted to restore it, unlocking the payment for Musk. Tesla calls the issuance of 96 million new shares a "goodwill" first step towards fulfilling Musk's initial $50 billion compensation package. A new long-term CEO compensation plan will be voted on by investors at the annual meeting on November 6. The Approval of Shareholders and New Terms Musk's new stock can only be transferred if he maintains a key executive position until 2027. After being transferred, he must hold them for five years, unless to cover taxes or purchase at $23.34 per share, which is equivalent to the price set in his 2018 compensation plan. If the court restores his 2018 compensation agreement, this grant will be canceled or reduced to avoid double compensation. This plan is supported by a special committee, including chairwoman Robyn Denholm and director Kathleen Wilson-Thompson. The commission notes that although Elon has many competing projects to vie for his time, they believe that the reward will "encourage Elon to stay at Tesla." Tesla up 2%, Bitcoin price rises prominently Tesla's stock rose 2% after the announcement of Elon Musk's new salary agreement. However, the stock has fallen 25% this year due to declining sales, outdated models, and backlash over Musk's political views. Customer loyalty has waned since Musk endorsed Trump, and analysts predict that sales will continue to decline into 2025. Tesla missed estimates in Q2 with revenue of $22.5 billion and EPS of $0.40, both lower than forecast. However, the $284 million profit from Tesla's Bitcoin stands out. Thanks to new accounting rules, the amount of cryptocurrency the company holds has increased from $951 million to $1.24 billion. But this increase could be much larger. Tesla purchased 43,200 BTC in 2021 for $1.5 billion, then sold over 75% when the market was down, only bringing in $936 million.