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Elon Musk’s $56b Tesla pay battle enters final stage in court
Musk could still secure tens of billions through a new compensation structure approved by Tesla

Elon Musk’s $56 billion Tesla pay dispute has reached its final phase as his legal team appears before the Delaware Supreme Court to seek reinstatement of his record-breaking compensation package.
The hearing comes nearly two years after a lower court voided the 2018 deal, calling it excessive and unfair to shareholders.
According to Reuters, in January 2024, Chancellor Kathaleen McCormick ruled that Tesla’s board lacked independence when it approved Musk’s pay plan and that shareholders were not fully informed before voting.
However, Musk’s appeal now stands to not only determine the fate of his compensation but also influence Delaware’s standing as the nation’s leading hub for corporate law.
Following the controversial ruling, several high-profile companies, including Tesla, Dropbox, and venture firm Andreessen Horowitz, shifted their legal bases to Texas or Nevada, a movement critics have labelled “Dexit.”
It should be noted that even if the appeal fails, Musk could still secure tens of billions through a new compensation structure approved by Tesla in August.
The updated plan is designed to retain Musk’s focus on robotics, artificial intelligence (AI), and the company’s transition toward autonomous driving technology.
Meanwhile, Tesla’s board has floated a $1 trillion long-term pay framework to reinforce its confidence in Musk’s leadership amid growing competition from Chinese EV makers and slowing global demand.