The Tesla board authorized the interim award the other day, with recusals from Musk and his sibling, Kimbal. The Tesla board is still dealing with “a longer-term CEO compensation strategy, which we plan to put to a shareholder vote at the November 6 annual meeting,” the letter stated.

The interim award would vest in 2 years, and Musk would be needed to hold the stock for 5 years. It has an arrangement avoiding Musk from being paid two times for the very same period on the occasion that the 2018 strategy is restored.

“If the Delaware courts fully reinstate the 2018 CEO Performance Award, this interim award will be forfeited or returned or a portion of the 2018 CEO Performance Award will be forfeited,” the letter to investors stated. “To put it simply, there cannot be any ‘double dip.’ Elon will not be able to keep this new award in addition to the options he will be awarded under the 2018 CEO Performance Award should the courts rule in our favor.”

Tesla brand name commitment dropped

While the interim award would enhance Musk’s ownership of Tesla from about 13 percent to 16 percent, getting the complete 2018 pay strategy would provide him over 20 percent of the business, the Financial Times composed. Musk grumbled last month, “I’ve got so little control that I can easily be ousted by activist shareholders after having built this army of humanoid robots.”

Amidst frustrating sales figures, Tesla’s stock cost has actually fallen 19 percent given that the start of 2025. Tesla’s brand name commitment amongst US-based clients collapsed after Musk backed Trump in the governmental race in 2015, according to S&P Global Mobility research study pointed out in a Reuters report today.

The information reveals that “Tesla’s customer loyalty peaked in June 2024, when 73 percent of Tesla-owning households in the market for a new car bought another Tesla,” the report stated. That rate fell to 49.9 percent by March 2025, listed below the market average, though it rebounded to 57.4 percent in May. The numbers are based upon automobile registration information in all 50 states, the report stated.

“I’ve never seen this rapid of a decline in such a short period of time,” S&P expert Tom Libby informed Reuters.