News Summary

The Delaware Supreme Court has reinstated Elon Musk’s controversial $56 billion pay package from Tesla, which was initially approved in 2018. This decision reverses a previous ruling by a lower court that voided the compensation on grounds of breach of fiduciary duty, citing Musk’s undue influence in its development. The restored package could now be worth as much as $139 billion. Tesla shareholders had previously approved the package, and despite the rulings, ensured Musk would receive the $56 billion. The court’s decision echoed Tesla board members’ arguments that rescinding the package would be inequitable. Musk’s dissatisfaction with Delaware’s court rulings has led him to relocate Tesla’s incorporation to Texas and publicly criticize the state’s judicial system.