WASHINGTON (dpa-AFX) - Tesla (TSLA) urged the Delaware Supreme Court to reinstate CEO Elon Musk's $56 billion pay deal, arguing that shareholders had already approved it in one of the most informed votes in Delaware history.
The appeal follows a lower court's decision in January 2024 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. The dispute's outcome could reshape Delaware's reputation as a corporate hub, especially as firms like Tesla and Dropbox move to Texas or Nevada over perceptions of judicial hostility toward executives.
Musk, who did not attend the hearing, could still receive tens of billions under a backup $25 billion replacement plan if the original award remains voided. 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.
Wednesday, TSLA closed at $435.15, up 1.38%, and currently trades after hours at $435.85, up 0.16% on the NasdaqGS.
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