Tesla's $29 billion Musk-centric gamble

With sales slumping and its reputation battered, the EV automaker is betting big that its future depends on keeping capricious CEO Elon Musk happy — and wealthy

SpaceX, Twitter and electric car maker Tesla CEO Elon Musk reacts as he speaks during his visit at the Vivatech technology startups and innovation fair at the Porte de Versailles exhibition center in Paris, on June 16, 2023.
Elon Musk has become virtually synonymous with the electric car company he owns, for better or worse
(Image credit: Getty Images)

Elon Musk's unprecedented wealth is in large part tied up in Tesla, the electric vehicle manufacturer he has positioned at the center of his sprawling business empire. But Musk's dependence on Tesla as his primary earnings engine is something of a two-way street, particularly as the car company scrambles to hold its mercurial CEO's attention amid sliding sales, a slumping reputation and increased market competition.

In a Securities and Exchange Commission filing this week, Tesla's two-person Special Committee of the Board of Directors announced plans to award Musk millions of shares of company stock — estimated to be worth up to $30 billion — because, the committee claimed, he has "not received meaningful compensation" at the company for years. "Retaining" Musk at Tesla, the committee said, is "more important than ever."

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
Explore More
Rafi Schwartz, The Week US

Rafi Schwartz has worked as a politics writer at The Week since 2022, where he covers elections, Congress and the White House. He was previously a contributing writer with Mic focusing largely on politics, a senior writer with Splinter News, a staff writer for Fusion's news lab, and the managing editor of Heeb Magazine, a Jewish life and culture publication. Rafi's work has appeared in Rolling Stone, GOOD and The Forward, among others.