U.S. Court Voids Elon Musk’s $56bn Tesla Compensation

A judge in the U.S. State of Delaware voided the $56 billion compensation package of Tesla Chief Executive, Elon Musk, on Tuesday, siding with a shareholder who claimed the entrepreneur was overpaid.

The judge, in Delaware Chancery Court ruled that the plaintiff, a Tesla shareholder named Richard Tornetta, was “entitled to rescission,” approving the annulment of Musk’s 2018 humongous compensation agreement worth as much as $55.8 billion.

Judge Kathaleen McCormick added that the parties must now “confer” and then submit a joint letter “identifying all issues, including fees that need to be addressed to bring this matter to a conclusion at the trial level.”

The electric vehicle maker’s share price fell more than three per cent in after-hours trading following the publication of the 200-page ruling.

In a message posted to X, formerly Twitter, shortly after the decision was announced, Musk  the world’s richest person wrote: “Never incorporate your company in the state of Delaware.”

A lawyer for Musk did not immediately respond to a request for comment.



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