Hello followers! Today, we dive into the exciting world of Tesla’s latest move involving Elon Musk’s potential mega-compensation plan. Buckle up, because this is one wild ride at the intersection of innovation and big bucks.

Tesla’s board has put forward a new hefty pay package for Musk, estimated at around $29 billion worth of shares. The reason? The fierce competition for top AI talents and Tesla’s pivotal moment in tech evolution. This plan will go to a shareholder vote scheduled for November, but it might be voided if the Delaware Supreme Court rules differently on Musk’s earlier 2018 deal, which was struck down in January 2024 for being unfairly negotiated.

Elon Musk has threatened to pull back from AI and robotics projects unless he gets more control. His new AI venture, xAI, now owns X, the social media platform. Tesla’s board formed a special committee earlier this year, including chairwoman Robyn Denholm and Kathleen Wilson-Thompson, to craft this new package. They decided on granting Musk 96 million shares that will vest over two years, conditional on him maintaining a continuous leadership role and holding onto the stock for five years.

Interestingly, unlike past awards, this new proposal isn’t tied to goals like increasing Tesla’s stock price. At Tesla’s current trading price, it’s valued at nearly $29 billion. Musk will need to buy the shares at $23.34 each, making the total value around $26.7 billion. The package’s fate hinges on legal rulings, with Tesla ensuring Musk won’t get double compensation if courts overturn the deal, especially since Musk and his brother Kimbal recused themselves from the negotiation process.

The background here involves a controversial 2018 plan valued at roughly $56 billion, which was invalidated by a judge due to flawed process and Musk’s influence. This led Tesla to re-incorporate from Delaware to Texas, a move driven partly by shareholder discontent. Despite a shareholder vote to reaffirm the pay, the court confirmed its previous decision, citing flawed legal arguments and process.

As Musk pushes his AI ambitions through xAI and attempts to shape Tesla’s future, this compensation proposal exemplifies the high-stakes chess game among Silicon Valley giants. Stay tuned for how this develops, as the court’s decision could significantly impact Elon’s empire and the AI talent war.