Elon Musk Wins Big: Delaware Court Backs His $55 Billion Tesla Deal
Delaware Supreme Court Overturns Lower Court Decision
The Delaware Supreme Court has ruled in favor of Elon Musk, allowing him to retain his $55.8 billion Tesla pay package from 2018. A lower court had previously blocked the compensation, but the higher court overturned the decision, stating it was too severe.
Pay Package Tied to Tesla's Growth
The pay package was contingent on Tesla meeting specific growth targets. The case gained attention when a Tesla shareholder sued, arguing the compensation was excessive. However, the Supreme Court disagreed.
Shareholders Approve Even Larger Pay Package
Meanwhile, Tesla shareholders have approved an even larger pay package for Musk, potentially worth up to $1 trillion if Tesla continues to grow.
Musk's Reaction to Lower Court Ruling
Musk was displeased when the lower court blocked his pay. He criticized Delaware, suggesting companies should leave the state. In 2024, he moved Tesla and SpaceX to Texas.
Delaware's Business-Friendly Reputation
Delaware is known for being business-friendly, with over 2.1 million companies incorporated there. However, some companies have recently relocated, including Andreessen Horowitz, which moved to Nevada due to legal concerns.
Delaware's Confidence Amid Challenges
Despite the criticism, Delaware officials remain unconcerned. They believe Delaware is still the best place for businesses. However, other states are actively trying to attract companies away from Delaware.
