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Unraveling the Deal that Made Musk the World’s Richest Person

via Matt Pocius on Tesla Stock & Money
This article was originally published at StateOfUnion.org. Publications approved for syndication have permission to republish this article, such as Microsoft News, Yahoo News, Newsbreak, UltimateNewswire and others. To learn more about syndication opportunities, visit About Us.

Elon Musk’s $56 billion pay package from Tesla has been invalidated by a Delaware judge, potentially requiring him to return stock options secured in 2018.

The ruling criticized the compensation process heavily influenced by Musk, describing it as deeply flawed.

Musk’s stake in Tesla has decreased, and the company is facing challenges.

This may be “a historical moment in the Tesla story,” Wedbush Securities managing director Daniel Ives said. But “the board,” he said, “is not going to lay down and let the Delaware court decide the future of Tesla.”

“Tesla will move immediately to hold a shareholder vote to transfer” their incorporation to Texas, following a poll of X users proved “unequivocally in favor of Texas!”

The ruling impacts Musk’s wealth and could jeopardize his plan to gain greater control of Tesla.

The ruling labeled Musk a “paradigmatic Superstar CEO” who “enjoyed thick ties with the directors tasked with negotiating on behalf of Tesla, and dominated the process that led to board approval of his compensation plan.”

“It is not clear how Tesla management reconciled their views that the milestones were both ‘risky’ and a ‘stretch’ yet simultaneously more than 70% likely to occur,” the ruling states.

“I feel like he’ll find a way to get most, if not all, of this,” Deepwater Asset Management managing partner Gene Munster said. “There’s going to probably be some sort of workaround to get there.”

It has raised questions surrounding Musk’s broader financial empire, as most of his wealth is tied up in stock or equity in private companies.

“He’s just working with a much thinner margin and a much smaller net,” law professor Eric Talley said.

The decision could lead to significant financial implications for Musk and Tesla’s future compensation packages.

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