Electric vehicle maker Tesla, Inc.’s TSLA stock fell in premarket trading on Wednesday after a Delaware Chancery Court Judge ruled to nullify CEO Elon Musk’s 2018 compensation plan.
The decision comes more than a year after the end of the trial, which looked into the merits of a shareholder lawsuit challenging the $55 billion compensation plan the board approved for Musk. Tesla can appeal the ruling in the Supreme Court of Delaware and eventually in the Supreme Court.
The development creates uncertainty at a time when Tesla is navigating fundamental challenges. Musk has aggravated fears further by commenting on the verdict on X, a social-media platform he owns. Even as the repercussions of the “funding secured” tweet in 2018 linger, the billionaire lamented the perils of being a public company.
"The parasitic load of being a public company has become extremely high," he said.
Souring of sentiment toward big techs following some high-profile disappointments and apprehensions ahead of Wednesday’s Fed decision could also be weighing down on the stock.
In premarket trading, the stock fell 2.79% to $186.25, according to Benzinga Pro data.
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