Tesla approves $29 billion in shares to Musk as court case rumbles on

Washington: Electric vehicle maker Tesla handed its chief executive, Elon Musk, a $29 billion pay package Monday, as a lengthy legal battle over his c...

Washington: Electric vehicle maker Tesla handed its chief executive, Elon Musk, a $29 billion pay package Monday, as a lengthy legal battle over his compensation winds on.

The company said in a statement it will award an "interim" distribution of 96 million Tesla shares to Musk as it "intends to compensate its CEO for his future services commensurate with his contributions to our company and shareholders."

"We have recommended this award as a first step, 'good faith' payment," it added when announcing the board's approval of granting new shares to Musk. "Retaining Elon is more important than ever before."

The massive pay package comes eight months after the judge in a Delaware court rejected Musk's even larger $55.8 billion compensation package at Tesla, denying an attempt to restore the pay deal through a shareholder vote.

In an initial decision in early 2024, the court struck down the package as excessive and unfair to shareholders. Musk has appealed the ruling.