Elon Musk, the head of Tesla, is once again making headlines: The legal dispute over a block of shares with a current value of more than 100 billion dollars is entering the next round. A judge in the US state of Delaware ruled that the allocation of the package was unlawful. Musk is now appealing - the case will end up in the Delaware Supreme Court.
The dispute over the billion-euro package
Background to the case
The controversial share package is based on a remuneration plan from 2018. This granted Musk the right, 300 million Tesla-shares at a fixed price from 2018 if the company reaches certain targets. Tesla exceeded these targets significantly faster than expected, increasing the value of the package from its original 2.6 billion dollars to 56 billion dollars in the year 2022. Today, the package is even estimated at over 100 billion dollars estimated.
Judge's ruling
A shareholder lawsuit led to the allocation of the package in 2022 being classified as unlawful. The judge argued that Musk had been negligent in the negotiations with the Tesla-Board of Directors and that this was concealed from the shareholders.
The case took a turn when the Tesla-shareholders approved the package again at an Annual General Meeting in June 2024 - this time with more information that became public as a result of the lawsuit. However, the judge stood by her rejection.
Influence of Musk's move to Texas
In the meantime, Musk has moved the official headquarters of Tesla Delaware to Texas. However, this move has no impact on the share package granted in 2018, as the legal basis remains in Delaware.
Significance for Musk and Tesla
Financial and symbolic value
With a current net worth of 426 billion dollars Musk is the richest person in the world. Nevertheless, this legal dispute has both financial and symbolic significance. The package not only represents a large part of his wealth, but also stands for Tesla's success and the balance of power within the company.
Reactions from the markets
The rapidly rising Tesla-share price in recent months shows that investors continue to have confidence in the company and Musk's management style. Many are speculating that Tesla could benefit from Musk's closeness to US President-elect Donald Trump.
Conclusion
The dispute over the multi-billion share package is more than a legal conflict - it raises fundamental questions about governance, transparency and the influence of a powerful CEO. The Delaware Supreme Court's decision could not only influence the course of Tesla's future, but also set a precedent for corporate governance worldwide.
Keywords: Tesla, Elon Musk, Tesla shares, Tesla compensation plan, Tesla News, Tesla Store, Shop4Tesla, share package, Tesla governance, electric cars
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