David Awoyode
Kimbal Musk, board member at Tesla and younger brother of Elon Musk, voiced support for Tesla’s interim pay package for the CEO. Speaking on CNBC’s Squawk Box Friday, he said:
“I think my brother deserves to be paid. He has had zero pay for the past six to eight years. I don’t think that’s right. I’ll let Tesla shareholders make that decision, but I believe he needs to be paid.”
AI at the Heart of Tesla’s Future
Kimbal also expressed support for Tesla’s potential investment in xAI, Elon Musk’s artificial intelligence company.
“Tesla can’t go without a deep understanding of AI. We have a great business relationship with xAI,” he said, noting that AI is now fundamental to every advanced technology company.
Shareholder Vote Looms in November
Both Elon Musk’s compensation and Tesla’s possible investment in xAI are key issues on the agenda for Tesla’s November shareholder meeting.
A History of Contested Pay Packages
Elon Musk does not receive a salary or cash bonuses at Tesla. Instead, his compensation has traditionally come from stock-based performance awards. A Delaware judge invalidated his $56 billion pay plan in January 2024, calling it the largest and most unjustified CEO package in U.S. corporate history. Despite shareholder approval, the court reaffirmed its ruling in December.
Interim Deal Worth $29 Billion
Earlier in August 2025, Tesla’s board granted Musk an interim award of around $29 billion in stock, or 96 million shares, contingent on his continued leadership for two more years. A long-term package will be put to a shareholder vote this November.
Pushback From Shareholders and Watchdogs
Not all investors are aligned with Musk or Tesla’s board. The SOC Investment Group, representing union pension funds, recently asked Nasdaq to probe whether Tesla violated listing rules by approving the interim package without prior shareholder consent.
Investor Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, also voiced skepticism, warning that Tesla’s pivot away from its EV core into robotics and ride services could be risky.
