Overview

• Tesla granted Elon Musk a provisional award of 96 million shares valued at about $29 billion based on the $23.34 exercise price from the 2018 plan
• This interim grant stands in for the original package that was twice annulled by Delaware courts for misleading disclosures despite two shareholder votes
• Tesla has appealed the December 2024 decision and set up a special committee to scrutinize the disputed compensation framework
• The dispute now turns on a yet-to-be-scheduled hearing before the Delaware Supreme Court
• Executives argue that retaining Musk is vital as Tesla contends with falling profits, stronger competition and a push into robotics and autonomous technology