Elon Musk, the world’s richest man, just got even richer after receiving a $29 billion bonus from Tesla as a “good faith” payment.
This bonus was described as a “good faith” payment to Musk after the previous $56 billion bonus deal made in 2018 was rescinded in December 2024 under the orders of Judge Kathaleen McCormick.
The decisions were made following a lawsuit filed by a Tesla shareholder who contested Musk’s compensation package from 2018. After reviewing the case, Judge McCormick concluded that Musk had orchestrated the historic pay package in fraudulent negotiations with directors who were not independent.
Still, Tesla’s directors kept their word and paid the previously agreed-upon bonus to the CEO. “Through Elon’s unique vision and leadership, Tesla is evolving from a leader in electric vehicles and renewable energy to a leader in AI, robotics, and related services,” the statement says.
“To recognize what Elon has achieved and the extraordinary value he has added to Tesla and our shareholders, we believe we must act to honor the agreement made in 2018. After all, ‘a deal is a deal.'”
“We are confident that this award will encourage Elon to remain at Tesla and focus his unmatched leadership skills on creating value for Tesla’s shareholders and attracting and retaining talent at Tesla,” the statement continues.
Tesla then granted the entrepreneur 96 million restricted shares, valued at approximately $29 billion. However, he will need to first pay $2 billion to receive them, which equals $23.34 per share.
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