Tesla has given its chief executive, Elon Musk, a stock grant of AUD$44 billion as an award to the billionaire, but it comes with conditions.

The brand has offered its CEO the massive payout after a Delaware court rejected Elon Musk’s much larger 2018 pay package of AUD$86 billion due to concerns over its fairness and the board’s independence.

Sales of Tesla electric cars have dropped by almost 40 percent in Australia. It also confronts intense competition from Chinese firms like BYD, and established giants like Ford and General Motors.

The brand reported disappointing revenues in July, with sales decreasing for a second ongoing quarter and car profit plunging 16 percent. Musk told analysts that the loss of EV tax benefits will be a challenge to overcome.

“We probably could have a few rough quarters. I am not saying that we will, but we could,” he said.

This “first step, good faith” grant is believed to keep Musk’s focus on cars instead of other fields, since Tesla has had a challenging year in 2025 with falling sales, profits and stock price.

With Musk’s “unique vision and leadership,” Tesla is ready to grow from a leader in electric cars and renewable energy industries, to a leader in AI, robotics and related services.

Wedbush analyst Dan Ives stated that the new compensation deal will alleviate concerns for Tesla shareholders.

“We believe this grant will now keep Musk as CEO of Tesla at least until 2030 and removes an overhang on the stock,” he said.