Tesla’s $45bn Pay Deal Vote Faces Fatal Flaws

Tesla Faces Legal Challenges Over Elon Musk's Compensation Amid Sales Decline

Tesla, the electric vehicle giant, finds itself at the center of a potential legal storm regarding Elon Musk's unprecedented compensation package, according to insights from Ann Lipton, a law professor at Tulane University. The automaker's push for investors to reapprove a 2018 vote granting Musk the largest pay package in history comes in the wake of a Delaware court decision that invalidated the previous approval due to governance oversights. This move seeks to rectify what Tesla frames as a moral commitment to Musk, contrary to focusing on shareholder value, potentially setting the stage for legal repercussions.