Elon Musk lost a lawsuit over record payments from Tesla: how much is involved

Elon Musk faced a new problem. It is about the decision of a judge in the state of Delaware to receive a reward from the company Tesla.

Elon Musk lost the court again

A Delaware judge has ruled on whether businessman and billionaire Elon Musk is entitled to a Tesla compensation package he agreed to in 2018. Reuters writes about it.

According to the court's decision, the CEO of Tesla is still not entitled to receive remuneration from the manufacturer of electric cars. The court upheld the decision it made in January. It is interesting that in June the company's shareholders again approved the payment package for the billionaire by an overwhelming majority of votes.

It should be recalled, that the legal drag began with a lawsuit by Tesla shareholder Richard Thornett, who accused the company's CEO of pressure during negotiations over a compensation package. According to him, the board of directors did not have the opportunity to vote and act independently when making this decision.

Elon Musk has already commented on the court decision. He stated that he considers the decision wrong and plans to file an appeal. Moreover, he called this decision "absolute corruption". In addition, the billionaire noticed that the court did not take into account the decision of the company's shareholders. Musk also wrote that "shareholders should control votes in the company, not judges."

In court documents, Tesla said the judge must accept the results of the June shareholder vote. They supported the payment of funds to Elon Musk, calling him the driving force of the company.

Tesla shares fell 1,4% after the court decision. The compensation package provides Musk with stock options if the company meets performance and valuation goals. If the businessman still manages to get the securities, his share in the Tesla company will grow from a little less than 13% to 20%.

The package was initially valued at $56 billion, but Tesla shares have risen 42% since November 5, 2024. After this rally, the reward package is approx 101 billion dollars.