The Delaware Supreme Court has scheduled oral arguments for October 15 to hear the case of Tesla Inc. CEO Elon Musk’s $56 billion compensation package. This package was initially struck down by a trial court in 2024. The court’s decision to hear the case comes after Musk and a group of Tesla board members appealed the ruling in a lawsuit filed by investor Richard Tornetta.
Details of the Hearing
The full panel of five High Court judges will preside over the hearing. The lawsuit argues that Delaware law does not support Musk’s claim that the Tesla board ratified the second shareholder vote approving his compensation package. Judge Kathleen McCormick initially struck down the award despite its approval by the Tesla board.
New Compensation Package for Elon Musk
Revised Compensation Details
Tesla has announced a revised compensation package for Musk, which would grant him over 96 million shares of the company, totaling over $29 billion in value. This new package is set to solidify Musk’s role as CEO until 2030.
Upcoming Shareholder Meeting
November Meeting Details
Tesla will hold its annual shareholder meeting in November. This decision comes after investors urged the company to hold the meeting, citing it as a legal requirement. The meeting is expected to be significant, given the current controversies surrounding Musk’s compensation and the company’s performance.
Multiple Lawsuits and Declining Sales
Lawsuits Against Tesla
Tesla is facing several lawsuits, including a recent court order to pay $243 million in damages over a 2019 Autopilot crash. The company is also facing a possible class-action lawsuit related to its Robotaxi technology, which some investors believe is dangerous and has committed traffic violations.
Declining Sales Performance
Tesla’s sales have been declining across multiple regions worldwide. The company has reported poor sales performances, adding to its current challenges.
Conclusion
The upcoming hearing on October 15 will be crucial for Elon Musk and Tesla, as it determines the fate of his $56 billion compensation package. Meanwhile, the company faces multiple lawsuits and declining sales, which could impact its future performance and Musk’s role as CEO.