Electric vehicle giant Tesla has established a special committee to update the compensation package for its Chief Executive Officer, Elon Musk. The move could potentially lead to a new allocation of company shares for Musk, according to reports from the Financial Times.

The special committee includes Board Chairman Robyn Denholm and independent board member Kathleen Wilson-Thompson.

This development comes at a pivotal time for Tesla. While Elon Musk remains the largest shareholder with a 13 percent stake, his focus for the company has shifted from being solely a producer of affordable electric cars towards autonomous taxi services and robotics. This indicates a transformation of Tesla from a conventional car manufacturer into an artificial intelligence (AI) and robotics firm.

Musk’s current compensation agreement, established in 2018, grants him the option to purchase 303 million Tesla shares at a price of $23 per share if the company achieves specific performance milestones.

Under Musk’s leadership, Tesla’s market value has increased significantly over the years, with its share price currently hovering around $230. However, a lower court in the United States has invalidated the 2018 compensation agreement between Tesla and Elon Musk. In response, Elon Musk filed an appeal with a higher court in March to challenge this decision.

Should the issue not be resolved through the courts, Tesla may enter into a new agreement with Musk. The company acknowledged last month that a special committee was reviewing Elon Musk’s compensation but did not provide further details at the time.

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