Wilmington, Delaware – Tesla urged the Delaware Supreme Court to reinstate CEO Elon Musk‘s $56 billion compensation package, arguing that shareholders had already approved it in one of the most informed votes in the state’s history.
The appeal follows a lower court’s decision in January 2024 – since upheld – that voided the package, citing board bias and inadequate disclosure to investors.
Tesla’s attorney Jeffrey Wall said reaffirming the shareholder vote would resolve the case, while opposing counsel argued it would set a precedent for endless litigation.
Musk, who did not attend the hearing, could still receive tens of billions of dollars under a backup $25 billion replacement plan if the original award remains voided.
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The far-right billionaire – already the richest person in the world – moved Tesla’s legal offices to Tesla in 2024 in response to the court’s decision and has called for other major companies to follow suit.
Tesla has since proposed a new $1 trillion compensation plan, signaling faith in Musk’s leadership as the company pivots toward robotics and autonomous driving.
The court is also reviewing a $345 million legal fee tied to the case, with a ruling expected in the coming months.
