The Delaware Supreme Court is set to decide on the validity of Elon Musk's 2018 pay package, a ruling that carries significant financial implications for Tesla. A judge had previously invalidated the package, citing that negotiations were compromised due to personal ties between the CEO and Tesla board members. If the original court ruling is upheld, Musk's replacement package would contain fewer shares and could reduce the company's profit by $3.25 billion each quarter over a two-year period. Tesla warned in a filing that such an outcome would have a negative impact on its business and earnings. If the ruling is reversed, Musk would be able to keep the stock options from the original 2018 package.
Tesla Faces Potential Multi-Billion Dollar Profit Hit as Court Weighs Musk's Pay Package