Elon Musk's $56 Billion Tesla Pay Package Gets Junked by Judge

Elon Musk's grant for his $56 billion pay package, the largest payment plan in industry history, has just been denied by a judge for being "deeply flawed."

Delaware Chancery Court Judge Kathaleen McCormick ruled that the richest person in the world and Tesla's board of directors failed to prove that "the compensation plan was fair."

According to McCormick, Musk launched a "self-driving process" to gain more foothold in the company.

The disputed compensation package refers to the 303 million split-adjusted stock options Musk received in 2018.

Tesla's stocks closed at $190.93 per share on Tuesday but have since dipped 3% following reports of the Delaware court decision.

In response, the Tesla CEO posted on X (formerly Twitter) to "never incorporate your company in the state of Delaware."

Pay Package Ruling a New Hurdle for Musk's Claim on Tesla Shares

The Chancery court ruling comes in as Musk is pushing to increase his shares to gain 25% of voting control in Tesla.

Musk earlier stated this month that he is "uncomfortable" with being the leader of the car manufacturer without being enough influential that he "can't be overturned."

The CEO currently owns 13% of the company's stake.

The increased share control will supposedly help Tesla push through with its AI and robotic products that can be integrated into its electronic vehicles.

It is worth noting that Tesla's board of directors have discussed Musk's might be "under the influence" of drugs prior to Musk's assertions.

The concerns were prompted after Musk hinted that he is "considering taking Tesla private at $420," a number closely associated with Marijuana.

It is uncertain if Musk's demand for more shares will push through following recent events, but the CEO has already said that he will "build products outside of Tesla" if his requests are denied.

Tesla Shares Dropping

Tesla's shares have been on a decline since the start of 2024 as the company gets involved in more controversies involving its CEO.

Its stocks currently sit almost at the same value a year ago at below $200.