LONDON (ShareCast) - (Sharecast News) - Tesla approved a $29bn share award for chief executive officer Elon Musk on Monday, aiming to secure his leadership at a time of declining sales and strategic upheaval.
The award, which granted Musk 96 million new shares, came as he appealed a Delaware court ruling that voided his 2018 compensation package - then worth over $50bn - on the grounds that it was excessive and unfair to shareholders.

Tesla's board said the new award, recommended by a special committee of two directors, was necessary to retain Musk as the company shifted focus from electric vehicles to artificial intelligence and autonomous technologies.

"Retaining Elon is more important than ever before," the company told shareholders, citing intensifying competition for AI talent and Musk's involvement in multiple ventures outside Tesla.

Musk's new compensation package would require him to remain in a key executive role through 2027.

The shares would vest only under that condition, and would be subject to a five-year holding period, except to cover taxes or purchase costs.

Musk would need to pay $23.34 per share as they vest, matching the exercise price from his 2018 award.

Tesla lost about 25% of its market value in the year to date amid slowing EV sales, growing competition from global automakers, and political controversy surrounding Musk's recent advisory role to US president Donald Trump.

Musk had since distanced himself from politics following a public falling out with Trump, whose administration cut support for EVs.

In recent earnings calls, Musk warned that Tesla could face "a few rough quarters" as US subsidies diminished.

He also acknowledged shareholder concerns about his divided focus and demanded greater control over the company, warning he could be "ousted by activist shareholders" without increased voting power.

The new stock award would raise Musk's stake in Tesla from about 13% to 16%.

If his 2018 package is reinstated on appeal, his ownership could exceed 20%, but the new award would be forfeited or offset to prevent duplication.

Tesla said the award was a "critical first step" to keep Musk focused on its pivot to AI-driven products such as robotaxis and humanoid robots.

At 0831 EDT (1331 BST), shares in Tesla were up 2.24% in premarket trading in New York, at $309.40.

Reporting by Josh White for Sharecast.com.

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