Elon Musk will have to give up $29 billion to receive the long‑awaited $56 million award.

Brief news summary

What happened How it was reflected Board of Directors of Tesla cancelled the “temporary” payment of $29 billion to be paid to Elon Musk in August 2025. April 21 In the quarterly SEC disclosure, the company confirmed the cancellation and explained that it was done under the principle of a “double‑payment ban.” Musk had previously received $56 billion in 2018, but a Delaware court cancelled that award. 2018–2024 After litigation and subsequent appeal, the company was forced to revise compensation terms. Under the new agreement Musk can receive up to $1 trillion in shares if he meets a series of operational targets (sell 20 million cars, launch a million robots, etc.). From 2025 to 2034 The company estimates the probability of achieving each goal and earmarks funds for payouts ranging from $105–120 billion.

What was specifically cancelled
- $29 billion – “temporary” payment to be paid to Musk in August 2025.
- This decision was made unanimously without Elon or his brother Kimbal Musk’s involvement.

> *“These measures are consistent with the double‑payment ban principle: if Musk receives compensation for 2018 achievements, he cannot simultaneously receive additional benefit from the current award,”* Tesla stated in its report.

History of the $56 billion and legal proceedings
1. 2018 – Musk received a package worth $56 million.
2. Shareholders challenged it, claiming the award was arbitrarily set and investors were not properly informed.
3. A Delaware judge cancelled the payment in 2024 after a long‑running case.
4. Tesla appealed to the state Supreme Court and initiated a new vote on the package.

New compensation plan
- $1 trillion in shares, contingent upon meeting the following goals:
- Deliver 20 million vehicles.
- Launch a million robots.
- Deploy a million robo‑taxis on roads.
- Increase market capitalization to >$8 trillion within ten years.
- Musk has 10 years (until 2034) to achieve these goals, but many are “softened” versions of previous promises.
- Tesla is not certain all items will be fully realized and will independently assess progress.

Financial reserves
Type of reserve Amount Condition
$9.97 million – likely operational milestones $9.97 billion Expected to be reached within the term of the agreement
$105–120 million – unlikely milestones $105.82–120.37 billion Reserved in case of failure

Restrictions on share sales
- Musk may sell shares from the restored package only if he meets the following conditions:
- Remains CEO or head of product development through 2028.
- Holds shares for at least five years.

These measures are intended to mitigate potential negative effects from large share sales and protect the company’s interests.