Tesla Registers Options on 300 Million Shares, Lifting Musk's Stake Above 20%

Tesla introduced a CEO performance award plan in 2018 that tied stock options to market capitalization and operating targets, making them the cornerstone of Elon Musk's long-term compensation. The options affect not only his personal wealth but also ownership concentration, shareholder voting power and the balance of Tesla's corporate governance.

Tesla recently registered stock options covering more than 300 million shares with the U.S. Securities and Exchange Commission, lifting Musk's stake back to at least 20.3%. If the options deliver their full economic benefit, his wealth could increase by more than $100 billion. However, the additional voting rights are subject to a “neutral voting” agreement and must be exercised in proportion to votes cast by other shareholders.