Tesla wants to keep Musk from resigning with 27 billion US dollars
Elon Musk is to receive 96 million Tesla shares at a bargain price to keep him in the company. Despite the recent slump in sales, his role is essential.
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Tesla's Board of Directors is making a new attempt at a billion-euro share package for CEO Elon Musk. Musk will receive 96 million shares if the antitrust authorities give their approval. At the current share price, this corresponds to a value of a good 29 billion US dollars or over 25 billion euros.
Musk must buy the shares at the ridiculous price of 23.34 US dollars per share. This would currently correspond to a profit of around 27 billion US dollars. The purchase price is based on the CEO share package agreed in 2018, which courts have repeatedly deemed inadmissible. They considered the payout to be disproportionately high and unfair to shareholders.
The current “temporary” share package contains one third of the shares agreed in 2018. If Tesla does manage to get the original payout enforced in court, the current one will be offset against it.
It is estimated that Tesla has sold around seven million cars in its entire company history. After deducting the share purchase price, the current package would correspond to a bonus of more than 3,800 US dollars per Tesla sold.
Tesla wants to keep Elon Musk in leadership position
In a letter to shareholders, a board committee writes that Tesla wants to keep Musk in the company with this share package. It is not specifically stated, but it is clear between the lines: Musk is likely to have threatened to resign.
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According to the letter, he is essential to drive the car manufacturer forward. The committee praises Musk's performance and leadership quality, even though sales slumped significantly in 2025. This slump is linked to Musk's political agenda. In addition, Tesla's market launch of the Cybertruck flopped.
As early as 2018, Tesla mainly cited its market capitalization on the stock exchange as a concrete performance target. Turnover and profit were formulated as vague secondary targets. In the letter to shareholders, the Tesla committee also emphasized market value exclusively.
More power on the board
The share package is also intended to increase Musk's power within Tesla: “This interim bonus is structured to increase his voting rights gradually after the grant. He has told us this repeatedly – and shareholders have confirmed this – and is an important part of incentivizing him to continue to focus on the important work we do here at Tesla.”
The share package only commits Musk to remain with Tesla in a “senior leadership role” for two years. The CEO is to commit to holding the shares for five years. However, the clause contains exceptions: Musk can use it to make tax payments and deduct the share purchase price.
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