Elon Musk's $56 Billion Tesla Pay Showdown Heads To Delaware Supreme Court In October

The Delaware Supreme Court has scheduled oral arguments over Tesla Inc. TSLA CEO Elon Musk's $56 billion compensation package, which a trial court struck down in 2024.

Elon Musk's $56B Pay Package Hearing On October 15

The court will hear the arguments on October 15 as the full panel of five High Court judges will preside over the hearing, Bloomberg reported on Tuesday. The decision comes after Judge Kathleen McCormick struck down the compensation award even after it was approved by the Tesla board.

The report states that Musk and a group of board members have appealed the decision in a lawsuit filed by investor Richard Tornetta, who argues that Delaware law does not support Musk's claim that the board ratified the second shareholder vote.

A New Compensation Package For Elon Musk, Shareholder Meeting In November

The news comes as Tesla recently announced a revised compensation package for Musk, which would grant the billionaire over 96 million shares of the EV giant, totaling over $29 billion in value.

Meanwhile, Tesla has also announced it will hold its annual shareholder meeting in November after the investors wrote to the board, urging the company that the meeting was required by law.

Several Lawsuits For Tesla, Declining Sales

Tesla has been facing multiple lawsuits, with the company recently ordered by the court to pay $243 million in damages to the plaintiffs over a 2019 Autopilot crash that resulted in the death of a woman in Florida.

The EV giant is also facing a possible class-action lawsuit by investors over the Tesla Robotaxi, which the plaintiffs deem to be dangerous, as it possibly committed traffic violations during June's Robotaxi launch event in Austin.

Elsewhere, Tesla sales have been declining, with the company reporting poor sales performances across multiple regions throughout the globe.

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