Tesla Restores $30 Billion Payout to Musk After Shareholder Vote

Tesla’s board has reinstated Elon Musk’s $30 billion compensation package following a decisive shareholder vote backing the controversial plan. Originally approved in 2018 and struck down by a Delaware judge in early 2024, the equity award has now been revalidated through a direct shareholder endorsement and renewed board authorization.

The board stated that over 70% of shareholders supported reinstating the full 2018 package, which was performance-based and linked to revenue and market cap milestones Musk has already met. The move removes a major governance overhang and signals continued alignment with Musk’s long-term leadership.

Governance Disputes and Strategic Stakes

The original award was invalidated over board process failures and lack of proper disclosures. Tesla’s board opted not to appeal but instead secured a fresh shareholder vote, seeking to resolve the issue without further litigation. While some investor groups remain critical, Tesla now claims legal clarity.

This also bolsters Musk’s push for control. He has stated repeatedly that he would only develop key AI and robotics projects at Tesla if granted 25% voting power. The reinstated award—delivered in stock options—brings him closer to that goal, though he remains under the threshold.

Tesla is also shifting its incorporation from Delaware to Texas, a move Musk says will better reflect the company's values and provide legal insulation. Critics warn it could weaken governance standards further.

Market Response and Forward Focus

Shares of Tesla (NASDAQ: TSLA) reacted modestly to the news, reflecting that the outcome had largely been priced in. Investors are now shifting attention back to core metrics: slowing delivery growth, eroding margins from price cuts, and competitive threats from Chinese EV makers.

Musk has promised renewed focus on full self-driving (FSD) and the Optimus robot program as future growth engines. Execution will be key to defending Tesla’s valuation premium amid growing scrutiny of its fundamentals.

Tips for Traders

• Track TSLA around the $280 resistance level as legal risk eases and focus shifts back to margins.

• Monitor any regulatory developments tied to Tesla’s move to Texas.

• Watch for changes in Musk’s equity stake or control structure—further moves could impact governance.

• Pay attention to updates on FSD and Optimus as catalysts beyond vehicle sales.

• Observe EV sector pricing trends—Tesla’s margin compression has implications across the space.