Tesla CEO Elon Musk receives another lucrative compensation package worth approximately $29 billion!

According to the Zhitong Finance APP, Tesla (TSLA.US) submitted documents to the U.S. Securities and Exchange Commission on Monday showing that the company's board of directors has granted a new temporary compensation plan to CEO Musk, which includes 96 million shares of stock, valued at approximately $29 billion based on the current stock price. This plan has attracted widespread attention from the market and reignited the controversy surrounding Musk's control and corporate governance.

According to Tesla's documents, the newly granted shares will vest over two years, provided that Musk continues to serve as CEO or in another key executive position. However, if Musk ultimately prevails in the ongoing 2018 compensation case and is able to exercise stock options valued at up to $56 billion at that time, this temporary compensation will be automatically canceled.

In 2018, Tesla granted Musk the largest executive compensation plan in history. However, in January 2024, Delaware Chief Justice Kathaleen McCormick ruled in the "Tornetta v. Musk" case that the compensation plan was improperly granted without the board adequately informing shareholders. Subsequently, Musk launched a "anti-Delaware" public relations campaign and moved Tesla's registration from Delaware to Texas, while appealing the ruling, which is currently under review by the Delaware Supreme Court.

Musk currently holds about 13% of Tesla's outstanding shares, but he has repeatedly expressed a desire to further increase his control over the company. In January of this year, he stated on social media platform X that if he could not obtain at least 25% voting control, he would shift the development plans for AI and robotics outside of Tesla.

In fact, public documents show that Musk registered the AI company xAI in Nevada as early as March 2023. This company is currently the parent company of social media platform X, responsible for developing AI technology and data infrastructure, and is collaborating with Tesla to integrate the Grok chatbot into electric vehicles. However, Tesla has never proactively disclosed the existence of xAI to shareholders, raising further questions about transparency in information disclosure.

According to Tesla's financial disclosures, this temporary compensation plan was approved by a "special committee" consisting of Chairman Robyn Denholm and Director Kathleen Wilson-Thompson, and there were no restrictions placed on Musk's establishment of new companies or participation in political activities.

It is worth noting that Musk temporarily stepped away from Tesla last year to actively engage in President Trump's campaign and served as a special employee of the Trump administration, leading the "DOGE" agency reform project aimed at streamlining the federal agency structure. Musk's political leanings have sparked some consumer backlash, and negative public opinion has significantly impacted Tesla's electric vehicle sales and brand image in the U.S. and Europe. Recently, Musk also publicly announced the establishment of a new political party, indicating that his political involvement will deepen.

Although Tesla's stock price rose more than 2% after Musk was granted the new compensation plan, the company's fundamentals still face pressure. The financial report released in July showed that Tesla experienced sales declines for two consecutive quarters, with automotive business revenue down 16% year-on-year. Musk admitted in a conference call with analysts that the gradual termination of electric vehicle tax credits will pose challenges for the company and warned of potentially poor performance in the coming quarters Elon Musk stated, "We may experience a few tough quarters. I'm not saying it will definitely happen, but there is indeed that possibility."