- Elon Musk forfeited 96 million Tesla shares following the board’s cancellation of a $29 billion interim compensation award, a move triggered by the “no double dip” principle.
- The company’s appeal win reinstated his original 2018 CEO performance award worth $56 billion, which Delaware courts had previously struck down.
- Musk’s newer 2025 CEO Performance Award, approved by shareholders and tied to ambitious long-term operational goals, remains unaffected by this shake-up.
Elon Musk has forfeited 96 million restricted Tesla shares worth approximately $29 billion, according to a company filing on Thursday. This significant financial shift follows the board’s official cancellation of an interim compensation award, a contingency plan created while his 2018 pay package was under legal appeal.
Consequently, his current stake in the electric vehicle maker now stands at 20%, or 717.1 million shares. The forfeiture was mandated by a “no double dip” principle preventing Musk from holding two separate award structures simultaneously. “These actions are consistent with the ‘no double dip’ principle,” the company stated in its quarterly filing.
The board approved revoking the interim award on Tuesday, with Musk and director Kimbal Musk excluded from the vote. Meanwhile, his restored 2018 package introduces new restrictions, requiring him to remain CEO or serve in product development through at least 2028. However, this cancellation does not affect his newer 2025 CEO Performance Award, which is tied to milestones like robotaxi deployment and could be worth up to $1 trillion.
Tesla stock is tracking its worst weekly performance in nearly four months, declining about 7% this week. This slump followed first-quarter results revealing a massive jump in capital expenditure plans for AI and robotics investments. Retail sentiment on platforms like Stocktwits has been “extremely bullish” despite the share price pressure, with one user noting the stock’s persistent “Elon ‘shine.'”
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