In a stunning and controversial move that’s sending shockwaves across Wall Street and Silicon Valley, Tesla’s board of directors has officially approved a colossal pay package for CEO Elon Musk — an eye-watering 96 million shares, valued at around $30 billion. This decision comes after Musk allegedly threatened to walk away from the electric vehicle company he helped build unless granted more control through an expanded equity stake.

The Billion-Dollar Ultimatum

Behind closed doors, sources close to the matter claim that Musk delivered a no-nonsense message to Tesla’s board: “Either you back me with the shares, or I leave.”

It was a bold gamble — one that many believed only Musk could make. The billionaire entrepreneur, known for his high-risk, high-reward mindset, apparently made it clear that without a significant increase in ownership, his future with Tesla was uncertain. The company, already facing fierce competition in the EV sector and market volatility, found itself in a precarious position: call Musk’s bluff, or comply with his demands.

Board’s Decision: Surrender or Strategy?

After weeks of intense internal discussions, the board caved — or strategized, depending on your perspective.

They approved the issuance of 96 million additional stock options to Musk, a package that mirrors the controversial 2018 compensation deal that had previously come under legal scrutiny. That deal, once estimated at $56 billion, was invalidated by a Delaware judge earlier this year, who ruled it was “unfair and tainted by conflicts of interest.”

But Musk and his supporters weren’t done.

In an unprecedented step, Tesla shareholders recently voted to reinstate the pay package, signaling unwavering support for Musk’s vision — and perhaps, their fear of losing the man synonymous with the brand.

Critics: “Corporate Blackmail”

The move has drawn fierce backlash.

“This isn’t a pay package — it’s corporate blackmail,” said Aaron Levine, an independent shareholder activist. “He threatened to leave, and they handed him $30 billion. That’s not leadership. That’s hostage-taking.”

Others argue that no one man should wield this much power, especially when the financial reward is so disproportionate. Musk, who already tops the global billionaire rankings, now stands to consolidate even more wealth and influence — at the potential expense of governance and transparency.

Supporters: “He’s Earned It”

Yet Musk’s defenders see things differently.

“Elon isn’t just a CEO. He’s the company’s engine, compass, and fuel,” said Tesla investor and venture capitalist Brian Caldwell. “Without him, there is no Tesla. He’s earned every penny and more.”

Supporters point to Tesla’s meteoric rise under Musk’s leadership: from a niche startup to the world’s most valuable car company, disrupting global auto markets and transforming the energy landscape. They argue that rewarding such impact is not only justified — it’s necessary to retain visionary talent.

The Shadow of X and SpaceX

Some insiders suggest that Musk’s demand for more Tesla stock wasn’t just about money — it was about power and leverage. Over the past two years, he’s increasingly split his time between Tesla and other ventures like X (formerly Twitter) and SpaceX, both of which require massive capital and management bandwidth.

The threat to “leave” Tesla could have meant reallocating his attention to these other ventures — a chilling prospect for investors.

In fact, several high-level sources believe Musk was positioning himself to move Tesla’s next-gen AI and robotics developments to a separate, Musk-controlled entity if his compensation demands were not met.

“It was a message,” one analyst said. “He was saying: I am the innovation. Either let me own more of it, or I’ll take it elsewhere.”

Legal Drama Ahead?

Despite the board’s approval and shareholder vote, legal clouds remain.

Some legal experts are already warning of renewed lawsuits — particularly from institutional investors who believe the board failed in its fiduciary duties.

“They’re allowing the CEO to dictate terms through threats,” said corporate law professor Julian Marsh. “That’s not how public companies should operate.”

Given the previous court rejection of Musk’s pay package, observers are bracing for another round of litigation — perhaps even more contentious than before.

Market Reaction: Turbulent Optimism

Tesla’s stock reacted with volatility in pre-market trading, as investors processed the implications of the deal.

Some saw it as a sign of stability — Musk isn’t going anywhere. Others viewed it as a warning: one man holds too much sway over a multi-billion-dollar public company.

“The market is torn,” said financial analyst Rebecca Chung. “They want Elon’s genius, but not his chaos.”

The Bigger Picture: Vision vs. Control

Ultimately, the situation highlights a deeper tension that has long followed Elon Musk: his vision can move mountains, but his methods often break rules.

He dreams of Mars, rewiring the brain, and creating an AI-powered future. But he also threatens to quit, fights regulators, fires off unfiltered tweets, and challenges every norm of corporate governance.

This latest move — demanding a $30 billion stake or threatening to leave — is classic Musk: unpredictable, high-stakes, and controversial.

And once again, he won.

Final Word

As one Tesla employee reportedly put it, “You don’t say no to Elon. You just try to survive the ride.”