Tesla’s board has approved a staggering $30 billion stock package for CEO Elon Musk, contingent on his continued leadership through 2025. The deal, offering 96 million shares at a steep discount, aims to retain Musk despite plummeting customer loyalty—now at 49.9%, below industry averages. Analysts attribute the decline to Musk’s polarizing political stance and an aging vehicle lineup, with U.S. sales dropping 8% and European sales crashing 33% in early 2025. Meanwhile, a Delaware court battles over a 2018 compensation package, potentially voiding the new agreement if upheld.
Legal and Market Pressures Mount
Tesla faces a $329 million legal blow from a fatal Autopilot crash verdict, compounding investor concerns. Despite pre-market gains of 2.4%, operational challenges persist: Chinese sales fell 8.4% in July, while rivals like BYD outsold Tesla 5-to-1. The firm’s risky Robotaxi expansion—lacking full regulatory approval—and a looming vote on investing in Musk’s AI startup further cloud its financial outlook.