Tesla Claims Victory in Legal Battle Over Elon Musk’s $56 Billion Pay Package

Tesla Claims Elon Musk Won Legal Battle Over $56 Billion Pay Package Despite Judge’s Ruling

In a surprising turn of events, Tesla is claiming that CEO Elon Musk has won his legal battle over his $56 billion pay package, despite a judge rescinding it earlier this year. According to a court filing made public on Thursday, the company argues that shareholders voted to ratify the 2018 package of stock options, which was voided by a Delaware judge in January.

The uncertainty surrounding the case has raised questions about Musk’s future with Tesla, as the company faces challenges such as slower sales and increased competition. Musk has hinted that he may develop products outside of Tesla if he does not obtain a larger ownership stake.

Tesla’s proposal for the judge, Chancellor Kathaleen McCormick of Delaware’s Court of Chancery, suggests that the final order should state “judgment is entered for the defendants.” On the other hand, the shareholders’ legal team is pushing for the original ruling voiding Musk’s pay package to be upheld, with a potential legal fee award of billions of dollars worth of Tesla stock.

McCormick has ordered the parties to prepare briefs on the impact of the shareholder vote on the case and has scheduled oral arguments for late July or early August. The judge will also hear arguments on the legal fee issue on July 8, with a ruling expected in the coming weeks.

Regardless of the outcome, the shareholder vote has raised questions about the value of winning the case, as it appears that Tesla shareholders support Musk’s compensation package. This could impact the plaintiff’s attorneys fee request, which is based on the value they provided by rescinding the pay package.