Elon Musk just got a whole lot richer.
Today, it was announced that Tesla had made the decision to award the 54-year-old CEO with 96 million shares of the automotive company, valued at an estimated $29 billion (£21 billion).
Confirming the decision in a post on X, which is also owned by Musk, a letter to Tesla shareholders was published, which stated the award was to recognise Musk's 'extraordinary work' and incentivise him to stay in his role.
"Through Elon’s unique vision and leadership, Tesla is transitioning from its role as a leader in the electric vehicle and renewable energy industries to grow towards becoming a leader in AI, robotics and related services," the statement read.
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"We are confident that this award will incentivise Elon to remain at Tesla and focus his unmatched leadership abilities on further creating shareholder value for Tesla shareholders and attracting and retaining talent at Tesla."
Why has Elon Musk been awarded $29 billion by Tesla?
The company's letter makes it clear that the decision to award Musk with shares in the company valued at $29 billion is part of an 'interim award' amid an ongoing battle between the Tesla founder and a Delaware court over a 2018 CEO Performance Award, which blocked him from receiving a compensation package valued at $56 billion (£42 billion).
According to a ruling against an appeal made by Musk last year, the court stated the deal was 'unfathomable' and should be cancelled, per the BBC.
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In the ruling, Judge Kathaleen McCormick said directors involved in negotiating the deal where perhaps perhaps 'starry eyed' by Musk.
Despite the ruling, the letter suggest the 2018 pay package could still be awarded to Musk, adding that in such case the billionaire businessman would either forfeit the interim award or a portion of the 2018 award in order to ensure no 'double dip'.
The letter also states that Musk would be expected to 'serve continuously in a senior leadership' at Tesla for the next 'two-year vesting term'.
"We believe it directly addresses a top concern and priority for shareholders and the Board alike: energising and focusing Elon on Tesla so he can propel Tesla into its next era of growth," the letter added.
So, how rich is Elon Musk?
According to Forbes, Elon Musk has an estimated net worth of $400.9 billion at the time of writing, making him the richest man in the world.
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As well as Tesla, the South African native also cofounded companies such as xAI, The Boring Company and Neuralink.
He previously purchased X (then Twitter) in 2022 and, until recently, was a senior advisor to US President Donald Trump.
Topics: Elon Musk, Tesla, Technology, Money
Brenna Cooper