Tesla approves $29 billion in shares to Elon Musk as court case rumbles on
The electric vehicle maker said in a statement it will award a distribution of 96 million Tesla shares to Musk as it "intends to compensate its CEO for his future services commensurate with his contributions to our company and shareholders."
The award comes as Tesla challenges a Delaware court ruling that struck down a 2018 package of about $55.8 billion. With that appeal dragging out, Monday's announcement marks an interim step while the company develops a "longer-term CEO compensation strategy," Tesla said in a letter to shareholders.
"We have recommended this award as a first step, 'good faith' payment," said the letter. "Retaining Elon is more important than ever before."
The move comes amid a fierce battle for top engineering talent as companies like Google and Meta compete for leadership on artificial intelligence.
The Tesla letter, signed by Tesla board members Robyn Denholm and Kathleen Wilson-Thompson, described Musk as a "magnet for hiring and retaining talent at Tesla," noting that Tesla is transitioning from its electric vehicle focus "to grow towards becoming a leader in AI, robotics and related services."
Musk is viewed within the business world as a unique talent after his success with building Tesla and SpaceX into major global companies.
But his stewardship at Tesla has come under scrutiny in the last year as car sales and profits have tumbled.
This trend has been partly due to Musk's support for far-right political causes, but also is related to a sluggish rollout of new auto models after the polarising Cybertruck sold poorly.
In a July 23 Tesla earnings call, Musk warned of more potentially "rough" quarters ahead before the company's robotics and AI ventures pay off.
On the call, Musk reiterated his concern about the current framework in which he holds about 13% of Tesla shares prior to Monday's award.
"As I've mentioned before, I think my control over Tesla should be enough to ensure that it goes in a good direction, but not so much control that I can't be thrown out if I go crazy," Musk said.
Tesla's statement did not explicitly mention Musk's foray into politics, which has sparked consumer boycotts and vandalism. But the letter by Denholm and Wilson-Thompson alluded to concerns that Musk's attention had drifted from the company, calling the interim package a step towards "keeping Elon's energies focused on Tesla."
The massive pay package comes eight months after the judge in a Delaware court rejected Musk's even larger compensation at Tesla, denying an attempt to restore the pay deal through a shareholder vote.
Musk would be required to forfeit the new compensation package should the appeals court rule in his favor and grant him the full 2018 compensation, which at the time was valued at $55.8 billion.
The new payout is sure to fuel concerns about the compensation for Musk, already the world's richest man, and whether the Tesla board is placing a sufficient check on the company's chief executive.
Tesla shares rose 2.4% Monday in early trading.
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Economic Times
5 minutes ago
- Economic Times
Trump ends Musk's ‘five things' rule for federal workers — why did the White House finally snap and pull the plug?
Synopsis Elon Musk's 'Five Things' email program has been officially scrapped by the Trump administration, ending months of confusion and pushback from federal workers. Introduced earlier in 2025 to boost accountability, the rule forced government employees to email weekly work summaries. But after growing backlash and internal agency resistance, the Office of Personnel Management finally shut it down. This marks a clear shift in President Trump's federal reform approach and signals the administration's distancing from Musk's influence in Washington. The move reaffirms trust in traditional oversight while rejecting unnecessary tech-driven mandates that created more chaos than clarity. Elon Musk's bold attempt to reshape federal productivity has come to an end. The Trump administration has officially scrapped Musk's controversial 'Five Things' weekly email directive, a rule that had required federal employees to report five accomplishments every week. Initially launched as part of Musk's aggressive government reform strategy, the program faced mounting criticism, internal pushback, and logistical chaos. Elon Musk's 'Five Things' email program officially scrapped by Trump administration amid backlash and confusion- In a major move that reflects growing tension between President Donald Trump and billionaire entrepreneur Elon Musk, the Trump administration has officially ended Musk's controversial 'Five Things' email directive that had stirred widespread confusion and discontent across federal agencies. The Office of Personnel Management (OPM) issued a formal notice on August 5, 2025, revoking the program, marking a definitive shift away from Musk's once-celebrated push for government efficiency. The 'Five Things' initiative, introduced earlier this year under Elon Musk's short-lived leadership at the Department of Government Efficiency (DOGE), required all federal employees to send weekly emails listing five key accomplishments from their work. Originally promoted as a tool for enhancing productivity and accountability, the policy quickly became a source of confusion, frustration, and resistance across multiple government departments. In the official memo released this week, OPM Director Scott Kupor stated that federal supervisors already have the 'tools and flexibility needed' to evaluate employee performance, rendering Musk's email summaries redundant and ineffective. This announcement comes just months after Musk's high-profile departure from the federal government and a public falling-out with President Trump, who had initially championed the program but later distanced himself as implementation faltered. In January 2025, President Trump tapped Elon Musk to lead the newly formed Department of Government Efficiency (DOGE)—a bold experiment aimed at reducing bureaucracy, slashing government costs, and streamlining federal operations. Musk, known for his disruptive business style at Tesla and SpaceX, wasted no time in pushing aggressive reforms. One of his first and most visible directives was the weekly 'Five Things' email rule. According to internal sources, Musk believed the practice would enhance workplace discipline, improve visibility into government functions, and cut down on inefficiencies. But what seemed like a simple accountability tool on the surface turned into a logistical headache for many government workers. As early as February 2025, signs of internal pushback began to surface. Agencies such as the Department of Defense, NASA, State Department, and Health and Human Services began advising employees to pause or disregard the directive entirely. Internal memos cited concerns about legal risks, cybersecurity vulnerabilities, and conflicting chains of command. Some supervisors complained that the requirement added administrative burdens without delivering meaningful insights. Others argued that the centralized summaries violated existing agency reporting protocols. In fact, by April, many departments had already unofficially stopped enforcing the rule—even before Musk left his post. Initially, President Trump praised Musk's approach, calling it 'ingenious' and a 'wake-up call for lazy bureaucracy.' But as criticism mounted and implementation faltered, the administration began quietly stepping back. By June, tensions between the two had boiled over. Trump publicly criticized Musk's handling of internal reforms and later revoked federal appointments aligned with Musk's DOGE team. Additionally, federal contracts involving Musk-owned companies like SpaceX, Neuralink, and The Boring Company came under review—further escalating the rift. The formal termination of the 'Five Things' policy now cements that rift, signaling the Trump administration's broader rejection of Musk-style micromanagement and automation-driven government models. In the memo issued August 5, the Office of Personnel Management stated that agencies would now 'return to existing oversight mechanisms' that include performance reviews, project evaluations, and internal accountability metrics. 'This directive is no longer in effect,' the OPM memo read. 'We believe agency leadership is fully equipped with the tools necessary to assess team performance without weekly reporting mandates.' The Trump administration's move underscores its confidence in traditional supervisory structures—and a desire to minimize administrative chaos stirred up by Musk's reforms. Musk's exit from government in late May followed a wave of resignations and infighting within DOGE. Critics called the agency 'chaotic' and 'visionless,' while supporters defended Musk's attempts to modernize Washington's outdated systems. Even after his departure, Musk remained vocal on social media, slamming what he called 'deep state resistance' to accountability and claiming that Trump 'betrayed the vision for real change.' Since then, he has focused on expanding his ventures in AI and space exploration, while DOGE has been largely sidelined within the administration. For the more than 2 million federal employees affected by the weekly email directive, the repeal comes as a major relief. The program had added extra hours of unpaid administrative work and opened employees to new levels of scrutiny, according to union leaders. The American Federation of Government Employees (AFGE) had been advocating for the policy to be scrapped, citing unfair labor practices and stress-related issues among staff. With this formal announcement, agencies can now focus on core mission work without the added burden of weekly summary submissions. The unraveling of Elon Musk's influence in Washington politics is now evident. From once being hailed as the face of 'Silicon Valley meets Capitol Hill,' Musk now finds himself on the outside looking in. His bold but divisive ideas—like algorithmic personnel tracking and AI-assisted departmental decision-making—failed to gain lasting traction. What's clear is that President Trump is reasserting control over his administration's direction, refocusing on efficiency through conventional oversight, and stepping back from experiments that stir more dysfunction than results. 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Time of India
23 minutes ago
- Time of India
Trump ends Musk's ‘five things' rule for federal workers — why did the White House finally snap and pull the plug?
Elon Musk's 'Five Things' email program officially scrapped by Trump administration amid backlash and confusion- In a major move that reflects growing tension between President Donald Trump and billionaire entrepreneur Elon Musk, the Trump administration has officially ended Musk's controversial 'Five Things' email directive that had stirred widespread confusion and discontent across federal agencies. The Office of Personnel Management (OPM) issued a formal notice on August 5, 2025, revoking the program, marking a definitive shift away from Musk's once-celebrated push for government efficiency. Trump administration pulls the plug on Musk's 'Five Things' mandate The 'Five Things' initiative, introduced earlier this year under Elon Musk's short-lived leadership at the Department of Government Efficiency (DOGE), required all federal employees to send weekly emails listing five key accomplishments from their work. Originally promoted as a tool for enhancing productivity and accountability, the policy quickly became a source of confusion, frustration, and resistance across multiple government departments. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program In the official memo released this week, OPM Director Scott Kupor stated that federal supervisors already have the 'tools and flexibility needed' to evaluate employee performance, rendering Musk's email summaries redundant and ineffective. This announcement comes just months after Musk's high-profile departure from the federal government and a public falling-out with President Trump, who had initially championed the program but later distanced himself as implementation faltered. Why Elon Musk launched the 'Five Things' emails In January 2025, President Trump tapped Elon Musk to lead the newly formed Department of Government Efficiency (DOGE)—a bold experiment aimed at reducing bureaucracy, slashing government costs, and streamlining federal operations. Musk, known for his disruptive business style at Tesla and SpaceX, wasted no time in pushing aggressive reforms. One of his first and most visible directives was the weekly 'Five Things' email rule. Live Events According to internal sources, Musk believed the practice would enhance workplace discipline, improve visibility into government functions, and cut down on inefficiencies. But what seemed like a simple accountability tool on the surface turned into a logistical headache for many government workers. Government agencies resisted Musk's rule early on As early as February 2025, signs of internal pushback began to surface. Agencies such as the Department of Defense, NASA, State Department, and Health and Human Services began advising employees to pause or disregard the directive entirely. Internal memos cited concerns about legal risks, cybersecurity vulnerabilities, and conflicting chains of command. Some supervisors complained that the requirement added administrative burdens without delivering meaningful insights. Others argued that the centralized summaries violated existing agency reporting protocols. In fact, by April, many departments had already unofficially stopped enforcing the rule—even before Musk left his post. Trump's shifting tone on Musk and his government efficiency agenda Initially, President Trump praised Musk's approach, calling it 'ingenious' and a 'wake-up call for lazy bureaucracy.' But as criticism mounted and implementation faltered, the administration began quietly stepping back. By June, tensions between the two had boiled over. Trump publicly criticized Musk's handling of internal reforms and later revoked federal appointments aligned with Musk's DOGE team. Additionally, federal contracts involving Musk-owned companies like SpaceX, Neuralink, and The Boring Company came under review—further escalating the rift. The formal termination of the 'Five Things' policy now cements that rift, signaling the Trump administration's broader rejection of Musk-style micromanagement and automation-driven government models. OPM memo signals return to traditional oversight In the memo issued August 5, the Office of Personnel Management stated that agencies would now 'return to existing oversight mechanisms' that include performance reviews, project evaluations, and internal accountability metrics. 'This directive is no longer in effect,' the OPM memo read. 'We believe agency leadership is fully equipped with the tools necessary to assess team performance without weekly reporting mandates.' The Trump administration's move underscores its confidence in traditional supervisory structures—and a desire to minimize administrative chaos stirred up by Musk's reforms. Fallout from Musk's departure continues Musk's exit from government in late May followed a wave of resignations and infighting within DOGE. Critics called the agency 'chaotic' and 'visionless,' while supporters defended Musk's attempts to modernize Washington's outdated systems. Even after his departure, Musk remained vocal on social media, slamming what he called 'deep state resistance' to accountability and claiming that Trump 'betrayed the vision for real change.' Since then, he has focused on expanding his ventures in AI and space exploration, while DOGE has been largely sidelined within the administration. What the end of 'Five Things' means for federal workers For the more than 2 million federal employees affected by the weekly email directive, the repeal comes as a major relief. The program had added extra hours of unpaid administrative work and opened employees to new levels of scrutiny, according to union leaders. The American Federation of Government Employees (AFGE) had been advocating for the policy to be scrapped, citing unfair labor practices and stress-related issues among staff. With this formal announcement, agencies can now focus on core mission work without the added burden of weekly summary submissions. Bigger picture: Is this the end of Musk's influence in Washington? The unraveling of Elon Musk's influence in Washington politics is now evident. From once being hailed as the face of 'Silicon Valley meets Capitol Hill,' Musk now finds himself on the outside looking in. His bold but divisive ideas—like algorithmic personnel tracking and AI-assisted departmental decision-making—failed to gain lasting traction. What's clear is that President Trump is reasserting control over his administration's direction, refocusing on efficiency through conventional oversight, and stepping back from experiments that stir more dysfunction than results. Trump draws line between innovation and disruption While innovation remains a key part of Trump's agenda for his second term, the administration has now drawn a clear line between meaningful reform and disruptive overreach. The end of Musk's 'Five Things' email rule symbolizes that shift. By formally terminating the program, the White House is sending a message: government reform must be functional, clear, and supported by institutional leadership—not just dictated by tech billionaires with grand visions. As 2025 moves forward, it's expected that the Trump administration will continue pushing for government modernization, but with greater respect for the realities of federal operations and agency autonomy. FAQs: Q1: Why did the Trump administration end Elon Musk's 'Five Things' email rule? Because it caused confusion, added workload, and was no longer seen as useful. Q2: What was Elon Musk's government email directive all about? It required federal workers to send weekly emails listing five things they accomplished.
Time of India
an hour ago
- Time of India
With BYD in fast lane, Tesla's Europe sales in July decline over 50% on-yr
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