A chill has settled over the job market this summer, as those already unemployed find themselves wondering if they’ll rejoin the labor force. The number of Americans without work for 27 weeks or more has risen to the highest level — discounting the pandemic spike — since 2017, at 1.8 million. Signs abound of businesses hesitating to hire as they weigh the impact of sweeping import duties and artificial intelligence on their needs. The pause has long-term implications for workers’ economic health, hitting earnings and retirement savings.
Tesla Inc. approved an interim stock award worth about $30 billion for Chief Executive Officer Elon Musk, a massive payout meant to keep the billionaire’s attention on the automaker as a legal fight over a 2018 pay package drags on.
The new agreement includes 96 million shares of the automaker that will vest if Musk continues to serve in the top post for another two years, the company said Monday in a regulatory filing. The restricted stock has an exercise price of $23.34, equal to the price in the prior compensation plan.
Shares of Tesla rose as much as 3.1% to $312.12 in New York before paring the gains to less than 1% at 11:07 a.m. The company’s stock was down 25% this year as of Friday’s close, compared with a 6% rise in the S&P 500.
The move underscores Musk’s grip on the company, even as it struggles with falling electric vehicle sales and a slumping stock price. The world’s richest person has said he wants a greater stake in Tesla as he reorients it around futuristic pursuits, including artificial intelligence and driverless vehicles.
The board emphasized the importance of retaining Musk, saying in a shareholder letter released Monday that the award was a first step “good faith” payment. “After all, a ‘deal is a deal.’” It said it’s working on a longer-term CEO compensation strategy, which will be put to a vote at the EV maker’s Nov. 6 annual meeting.
The decision was met with early praise by some investors and analysts. It “removes an overhang on the stock” and likely ensures Musk remains as CEO for a number of years, Wedbush analyst Dan Ives said in a note. “Musk remains Tesla’s big asset and this comp issue has been a constant concern of shareholders.”
The value of the new award, based on the latest trading price, doesn’t take into account that Musk has to pay $23.34 per share, or $2.24 billion in total, to collect it.
The per-share purchase price — akin to a stock option’s exercise price — echoes back to when companies would hand out options to executives but set their grant date to an earlier point in time when the share price was lower. This meant the securities were immediately in the money. Backdating isn’t illegal, but the practice has become much less common after it was a feature in several corporate scandals in the 2000s.
Moonshot Award
Tesla investors in 2018 voted to award Musk a “moonshot” package of stock options that vested upon meeting certain milestones. The unprecedented agreement was initially worth $2.6 billion and spiked to $56 billion by the time a Delaware court blocked it in early 2024. Plunging and soaring with the company’s fortunes, it has been valued more than $100 billion, according to the Bloomberg Billionaires Index.
That pay package was voided after a shareholder lawsuit. The decision is being appealed, but could still take months to be resolved.
Musk reincorporated the automaker in Texas last year, citing the court decision as part of the reason for leaving Delaware. A special board committee had been exploring ways to offer Musk a new compensation agreement in Texas, which would govern this pay package. The committee consists of two people: Chair Robyn Denholm and board member Kathleen Wilson-Thompson.
Amid the ongoing court fight over Musk’s original pay package, Tesla has taken steps to ward off future legal challenges to attempts to compensate its CEO. In Texas, the business-friendly ethos of Republican leaders has resulted in new regulations and protections for companies based in the state. Among those: a new law that allows businesses to impose limits on which investors can challenge a company’s actions in court.
In May, Tesla capitalized on the new law and updated its corporate bylaws to require investors to own at least 3% of the company’s shares to “institute or maintain a derivative proceeding.”
Inflection Point
Since it looked like the legal challenges would drag on, the board said it needed to act to retain Musk “against the backdrop of the ever-intensifying AI talent war and Tesla’s position at a critical inflection point.”
The award requires Musk to serve continuously in a senior leadership role at Tesla during the two-year vesting term and that he hold the shares for five years from the grant date. If the Delaware court fully reinstates the 2018 performance award, Musk will have to forfeit or return the interim award. “To put it simply, there cannot be any ‘double dip,’” the filing said.
The proposal suggests Musk won’t relinquish the CEO title in the near term. He has served as the automaker’s top executive since 2008. Musk told Bloomberg in an interview in May that he’s committed to still being at the helm in five years.
Tesla’s board is sticking with Musk despite his competing priorities. Besides overseeing four other companies, politics has taken up a lot of Musk’s attention this year. His decision to bankroll President Donald Trump’s reelection campaign and lead the DOGE effort to remake the federal government sparked a backlash against the electric vehicle maker.
“While we recognize that Elon’s business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging, including his leadership roles at xAI, SpaceX, Neuralink, X Corp. and the Boring Co. as well as his other interests, we are confident that this award will incentivize Elon to remain at Tesla,” the board said in its letter. “To be clear, losing Elon would not only mean the loss of his talents but also the loss of a leader who is a magnet for hiring and retaining talent at Tesla.”
Tesla has seen an exodus of notable workers in recent months. Omead Afshar, a longtime Musk confidant who oversaw sales and manufacturing operations in North America and Europe, and Jenna Ferrua in human resources, both exited, Bloomberg reported in June. Milan Kovac, head of engineering for the Optimus humanoid robot program, stepped down , citing a desire to spend more time with his family. David Lau, vice president of software engineering, departed earlier in the year.
Late May marked Musk’s last official day as a special government employee, and he committed to spending more time at Tesla. But just days later, he engaged in a bitter public falling out with Trump that led to the president threatening to cancel his companies’ federal contracts. Musk has since said he regretted some of his comments. He’s also said he will form a new political party.
Tesla recaptured some momentum in the middle of the year after rolling out its long-promised driverless-taxi service that Musk sees as an important part of its future business. The company launched on June 22 with a handful of robotaxis in Austin and has been working to expand.
Last month, Tesla reported another big drop in quarterly sales, setting it up for a full-year decline. Musk at the time warned that the automaker faced potentially “a few rough quarters” ahead.
New York Post Media Group is heading west in early 2026 with plans for The California Post, the tabloid announced on Monday.
Naturally, the new outlet will set up its headquarters in Los Angeles with Nick Papps as The California Post’s Editor-in-Chief. The publication will be available via print, mobile, desktop, video, audio, and social media, and will be a separate entity from the existing Post.
“This is the next manifestation of our national brand. California is the most populous state in the country, and is the epicenter of entertainment, the AI revolution, and advanced manufacturing — not to mention a sports powerhouse. Yet many stories are not being told, and many viewpoints are not being represented,” NY Post EIC Keith Poole said in a Monday statement. “With The California Post, we will bring a common-sense, issue-based approach to metropolitan journalism. We’ll tell the stories that our readers care about the most, but others overlook, and we’ll do so with clarity and our trademark conviction, across print, digital, and the platforms where audiences live today.”
He continued, “I am also thrilled to welcome Nick Papps to The Post family. Nick has a keen sense for the stories that matter, an understanding of what makes Los Angeles tick, and the ability to apply The Post’s unique voice to this vibrant market.”
“Los Angeles and California surely need a daily dose of The Post as an antidote to the jaundiced, jaded journalism that has sadly proliferated. We are at a pivotal moment for the city and the state, and there is no doubt that The Post will play a crucial role in engaging and enlightening readers, who are starved of serious reporting and puckish wit,” News Corp Chief Executive Robert Thomson added. “I am also pleased that Keith Poole’s remit is expanding, as he will now be responsible for covering not just New York, but California, the U.S., the world, and, perhaps, Mars.”
“Our content is read everywhere from the corner store to the corner office,” Sean Giancola, CEO of NYPMG, agreed. “We are trusted by millions for our direct and plain-spoken approach to news, and The New York Post has been the voice of the people in New York for 200 years. California is a vibrant, dynamic market where our unique journalistic ethos will resonate and engage audiences in meaningful ways.”
Sydney Sweeney can't shake all the drama surrounding her controversial American Eagle ad ... 'cause she got heckled at her latest movie premiere Sunday night.
The actress rolled up in a black SUV to the "Americana" premiere at Desert 5 Spot in Hollywood — only to be heckled by some lady as she stepped out.
Check out the video, obtained by TMZ ... Sydney -- dressed like a princess in a pale yellow gown -- is being led by security from the SUV to the theater's entrance.
As she makes her way inside, the heckler -- who's not seen in the video -- shouts, "Stop the ad, that is being racist!" But Sydney plays it cool and unbothered, disappearing into the movie house.
As you know ... Sydney was recently targeted by a bunch of TikTokers who have criticized her American Eagle ad campaign, saying it was implicitly racist.
American Eagle has come to Sydney's defense, issuing a statement saying the ad was all about her jeans and her story ... shutting down slanderous claims of white supremacy and eugenics.
BTW, Sydney also hit the red carpet last night with her "Americana" costars Halsey and Simon Rex, as well as director Tony Tost. While posing for the paparazzi, Sydney did not get any more flak for her AE ad ... which must have been a relief.
All's well that ends.
American Eagle stock soared Monday after President Trump hailed the company's controversial commercial starring actor Sydney Sweeney.
The sexually charged ad campaign — featuring the double-entendre tagline "Sydney Sweeney has great jeans" — has stirred debate over race, beauty, and history.
- Supporters like its creative sensuality, while critics say its focus on Sweeney's "genes" is uncomfortably close to a positive portrayal of eugenics.
American Eagle shares rose more than 16% as of 11:05am Monday after Trump called it "the 'HOTTEST' ad out there" and said "the jeans are 'flying off the shelves.'"
- "Go get 'em Sydney!" he posted, noting reports that she registered as a Republican in 2024.
- American Eagle representatives did not immediately respond to a request for comment. The company has not given any indication that its jean sales are soaring.