Two weeks since a Delaware court’s ruling that Tesla must revoke Elon Musk’s $56 billion pay package, the company’s board has remained silent on the implications for shareholders and the future course of action for the unpredictable CEO.
In a detailed 200-page opinion delivered on Jan. 30, Chancellor Kathaleen McCormick characterized the pay agreement as the most substantial in public corporate history, highlighting that it was approved by individuals who were “indebted to Musk.” Following this verdict, Musk has criticized the court and featured a post on his X social media platform advising against incorporating companies in Delaware. Additionally, he announced Tesla’s intention to seek approval from shareholders to relocate its incorporation to Texas.
Despite these developments, Tesla has not yet filed with the SEC to inform shareholders about the court’s decision.
The ruling coincided with Musk’s expressed desire for increased control over Tesla, as indicated in a mid-January X post where he outlined intentions to secure approximately 25% of voting power in order to elevate the company to a prominent position in artificial intelligence and robotics. Notably, Musk is actively engaged in establishing an AI firm named xAI separate from Tesla.
Source (CNBC)
