Aug 4 (Reuters) -

Tesla has granted CEO Elon Musk 96 million shares

worth about $29 billion, a move aimed at keeping the billionaire

entrepreneur at the helm as he fights a court ruling that voided

his original pay deal for being unfair to shareholders.

In 2024, a Delaware court voided Musk's 2018

compensation package, valued at over $50 billion, citing that

the Tesla board's approval process was flawed and unfair to

shareholders.

Musk kicked off an appeal in March against the order,

claiming a lower court judge made multiple legal errors in

rescinding the record compensation.

Earlier this year, the EV maker said the board had

formed a special committee to consider some compensation matters

involving Musk, without disclosing any details.

Tesla is at a turning point as Musk, its largest

shareholder with a 13% stake, shifts focus from a promised

affordable EV platform to robotaxis and humanoid robots,

positioning the company more as an AI and robotics firm than an

automaker.

"While we recognize Elon's business ventures, interests

and other potential demands on his time and attention are

extensive and wide-ranging ... we are confident that this award

will incentivize Elon to remain at Tesla," the special committee

said in the filing.

The award is designed to gradually boost Musk's voting

power, something he and shareholders have consistently said was

key to keeping him focused on Tesla's mission, it added.

Musk must pay Tesla $23.34 per share of restricted stock

that vests, which is equal to the exercise price per share of

the 2018 CEO Award, it said in the filing.

Tesla shares rose more than 2% in premarket trading.