🔥 Elon Musk doesn't give up: Determined to reclaim 56 billion USD rejected by the court
💰 The legal battle remains unresolved
Elon Musk is appealing the court's decision to reject the 56 billion USD bonus package at Tesla, even though this package has been approved by shareholders twice. Judge Kathaleen McCormick believes Musk has too much influence over the board of directors, leading to a lack of objectivity in the decision.
📜 What is in the 56 billion USD bonus package?
In 2018, Musk agreed to forgo a salary, instead gaining the right to purchase 303 million Tesla shares at 23 USD/share if the company meets certain goals.
To date, Tesla has met all conditions, but the court still rejected the agreement.
Tesla's stock is currently at 230.58 USD/share.
⚖️ How does Musk respond?
He argues that the court was wrong to apply the “entire fairness” standard and misjudged his level of control over Tesla.
The appeal claims that Musk only owns 21.9% of the shares, which cannot manipulate the board of directors.
The court's decision contradicts Delaware law and corporate governance principles.
🚀 Why is Musk determined to reclaim the bonus?
If not restored, Tesla may have to establish a new salary package worth 25 billion USD.
Musk wants more shares in Tesla; otherwise, he may focus on SpaceX or AI.
🏛 "DExit" – The wave of leaving Delaware?
Musk criticizes Delaware, encouraging Tesla and other companies to move their business registrations elsewhere. Some large corporations like Meta and TripAdvisor are considering leaving, forcing Delaware's legislature to consider amending laws to prevent widespread “DExit.”
🔥 The legal battle is still ongoing; will Elon Musk be able to reclaim 56 billion USD?
