Tesla filed a Form S-8 with the SEC to register approximately 304 million shares for CEO Elon Musk’s 2018 performance-based pay package. This filing follows a Delaware Supreme Court decision that restored the award and ended a prolonged legal dispute. The compensation plan is currently valued at over $114 billion.
Musk is required to hold the shares for five years to mitigate potential market impact. Tesla will recognize $9.97 billion in stock-based compensation expenses related to the issuance. This expense is expected to impact the company's earnings in upcoming quarters.