Tesla has awarded CEO Elon Musk a fresh batch of 96 million restricted stock options, estimated to be worth around $29 billion, The Associated Press reported on Monday. According to a regulatory filing, Musk will need to pay $23.34 per share to exercise these options — similar to the terms from a contentious 2018 compensation deal that was recently struck down in court.
This new award, the report said, comes just six months after Delaware Chancellor Kathaleen St Jude McCormick ruled that Tesla had to revoke Musk’s original $56 billion pay package. McCormick found that Musk had “engineered the landmark pay package in sham negotiations with directors who were not independent,” as reported by AP.
Legal Hurdles and a Pricey Court Battle
The judge’s January ruling came after a Tesla shareholder lawsuit challenged the enormous 2018 pay deal. While she rejected the initial five billion dollar legal fee request from the plaintiff’s attorneys, McCormick did award them $345 million. Musk is appealing the decision, even as Tesla created a special committee in April to re-examine the CEO’s compensation.
Stock Slump and Shareholder Pressure
Notably, the stock award development comes as Tesla is seemingly struggling both financially and reputationally. Shares are reported to have fallen 25% in 2025, partly due to investor backlash over Musk’s ties to President Donald Trump and his increasingly visible role in Washington at the time. Some Tesla shareholders also worry that Musk’s political involvement had distracted him from running the company in an effective manner.
In Tesla’s most recent quarterly earnings, profit dropped sharply from $1.39 billion to just $409 million. Revenue fell short too, even missing Wall Street’s already lowered expectations.
Annual Meeting and Investor Discontent
With Tesla stock underperforming and leadership under scrutiny, more than 20 shareholders reportedly sent a letter urging the company to provide notice of its annual meeting, now scheduled for November as required under Texas law. “Tesla investors need clarity and accountability,” the group said, per AP.
