Court rejects Tesla’s $56 billion package for Elon Musk

Elon Musk is one of the richest individuals in the world but do you know how much he wanted to be paid as the CEO of Tesla in the near future?

It may be hard to believe but Elon Musk sought a $56 billion package as Tesla’s CEO.

However, in January 2024, a Delaware court blocked the company from giving him this amount.

Now, once again, a Delaware court judge has upheld the decision and ordered the package not to be implemented.

Tesla had initially approved this package in 2018.

In 2018, Tesla investor Richard Tornetta filed a lawsuit in Delaware court claiming that Musk had created his own salary plan which violated the law.

He argued that board members intentionally hid key details from shareholders to get approval for the salary deal.

In its decision in January 2024, the court ruled that the Tesla board improperly structured Musk’s package.

The court ordered that the plaintiff along with Musk’s legal team ensure that the decision is enforced.

In June 2024, during Tesla’s annual shareholder meeting, the company asked investors to approve the 2018 package again.

After the package was re-approved to avoid legal issues, Tesla’s shareholders approved moving the company’s headquarters from Delaware to Texas.

However, the court once again invalidated the package which is a major blow for Tesla and Musk.

Despite this setback, Musk’s wealth has significantly increased in recent weeks.

Since Donald Trump’s success in the U.S. presidential elections, Musk’s fortune has risen by over $43 billion.

Musk owns 13% of Tesla’s shares and does not take a monthly salary from the company.