Tesla moves to unlock Elon Musk’s $114 billion stock award after legal win

Tesla has taken a major step toward reinstating Elon Musk’s controversial 2018 compensation package by filing to register nearly 304 million shares linked to the award, currently valued at more than $114 billion.

The electric vehicle (EV) maker disclosed in a new filing with the US Securities and Exchange Commission that 303,960,630 shares have now been formally registered under Musk’s CEO Performance Award.

The filing follows a key legal victory in December 2025, when the Delaware Supreme Court overturned a lower court decision that had previously voided the package over governance concerns.

The pay plan, widely regarded as one of the largest executive compensation awards in corporate history, was originally approved in 2018 and tied to aggressive operational and market value milestones that Tesla later achieved.

Under the terms of the arrangement, Musk must continue serving in a leadership role through 2028 and hold any exercised shares for at least five years.

While the SEC registration does not mean Musk will immediately sell stock, it clears the way for him to exercise the options before they expire in early 2028.

Market analysts note that any future share sales could influence Tesla’s stock performance, particularly because Musk has previously sold stock after exercising options to meet tax obligations.

Tesla also disclosed that roughly $9.97 billion in stock-based compensation expense tied to the award remains to be recognised in upcoming financial periods.

The filing arrives as Wall Street remains sharply divided over Tesla’s long-term valuation, with some analysts viewing the company as a traditional automaker while others increasingly price it as an artificial intelligence and robotics leader under Musk’s vision.