Tesla approved a stock award worth around $29 billion to Elon Musk, the company disclosed in an SEC filing, in a move that comes after a judge struck down an earlier multibillion-dollar pay package granted to the carmakers centibillionaire CEO.

Grok Chatbot Associated Press

In the regulatory filing, the company said it was granting 96 million shares of common stock to Musk as an interim award.

The committee which includes Tesla chair Robyn Denholm and board member Kathleen Wilson-Thompson told shareholders, we know that one of your top concerns is keeping Elons energies focused on Tesla, and the stock award was a critical first step toward achieving that goal.

As the legal case over Musks earlier pay package remains pending before court the committee said it deliberated carefully to grant this interim stock award to Musk against the backdrop of the ever-intensifying AI talent war and Teslas position at a critical inflection point.

The statement noted that a longer-term CEO compensation strategy for Musk will be put to a shareholder vote at the companys November 6 annual meeting.

In the letter to the shareholders, the committee members noted: While we recognize that Elons business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging...we are confident that this award will incentivize Elon to remain at Tesla. The board members also noted: Losing Elon would not only mean the loss of his talents but also the loss of a leader who is a magnet for hiring and retaining talent at Tesla.

How Has The Announcement Impacted Tesla Share Price?

The electric car makers shares rose sharply in premarket trading on Monday morning to $309.31, up 2.21% from Fridays close. Teslas stock price is down more than 20% since the start of this year.

Forbes Valuation

Musks current net worth stands at $398 billion, according to Forbes estimates. According to the Real Time Billionaires list, Musk is the richest person in the world by a significant margin, ahead of Oracle founder Larry Ellison, Meta founder and CEO Mark Zuckerberg and Amazon founder Jeff Bezos.

Further Reading

How Tesla's Board Should Rein In Elon Musk, According To Prominent Analyst (Forbes)

Elon Musk (And Tesla) Became Much More Unpopular As Unfavorability Soars To 55% (Forbes)

Even Though Musk Got The Votes, He Won't See $50 Billion For A Long Time (Forbes)