By Gurkha Insight • Business • Aug 26, 2025 19:33 PM • 13 views
When annualized, this staggering figure translates to an hourly compensation of approximately $3.3 million per hour. In a move that has once again placed executive pay under a microscope, Tesla has granted its CEO, Elon Musk, a stock award worth an estimated $29 billion. This interim package, announced as the company navigates a legal dispute over a prior compensation deal, is part of an effort to ensure Musk's continued leadership and focus on the company's future in AI and robotics.
In a headline-grabbing move, Tesla has granted CEO Elon Musk a massive stock award worth $29 billion—a figure so large that, if broken down hourly, it works out to roughly $3.3 million per hour over two years. But before you picture Musk clocking in for a pay cheque every 60 minutes, there’s a lot more to the story.
The Fine Print Behind the $3.3 Million/Hour Figure
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Not a Traditional Salary: This isn’t cash in Musk’s pocket. The award is in restricted Tesla stock, meaning he only gets it if he stays as CEO (or in another top role) for two years and holds the shares for five years.
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Stock-Dependent Value: The $29 billion is based on Tesla’s current share price—if the stock drops, so does the payout.
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Legal Escape Hatch: If courts reinstate Musk’s even bigger $56 billion 2018 pay package (currently tied up in appeals), this new award vanishes.
Why Tesla Did This
Tesla’s board argues Musk is irreplaceable as the company shifts from cars to AI, robotaxis, and robotics. With sales slumping and competition rising, they’re betting this deal keeps him focused—despite his side gigs running SpaceX, xAI, and even dabbling in politics
The Backlash
Critics call the package "obscene", especially as Tesla’s stock has fallen 25% this year amid Musk’s polarising political moves and weaker earnings. Some investors worry he’s spread too thin, while others see it as the price of keeping a visionary leader.
The Bottom Line
While the $3.3 million/hour tagline is eye-popping, the reality is more complicated: Musk only gets the payout if he delivers for Tesla long-term. For now, it’s a high-stakes gamble—one that could either secure Tesla’s future or become another chapter in the saga of corporate America’s most controversial CEO pay packages. Getty Image Elon Musk
