Tesla CEO Elon Musk loses bid to get $56 billion pay package reinstated
Elon Musk, the world’s richest person, faced a legal setback on Monday when a Delaware court rejected his massive Tesla pay package for the second time. Despite this, his net worth has skyrocketed to an estimated $353 billion, an increase of $91 billion in just a month, according to the Bloomberg Billionaires Index.
The court ruling came as Musk’s influence continues to grow, bolstered by his strong ties with Donald Trump following the former president’s recent electoral win. Musk’s personal fortune, already astronomical, seems unfazed by the rejection of the compensation deal, which was initially valued at $56 billion but now exceeds $100 billion.
Investors remain bullish on Musk’s enterprises, particularly Tesla and SpaceX, which have seen massive valuation boosts since the election. Tesla’s share price surged by 40%, adding about $100 to its stock value, driven by optimism over federal support for self-driving technology. SpaceX, a major beneficiary of federal contracts, is reportedly negotiating a deal valuing the company at $350 billion—up nearly $100 billion in a single month.
Musk’s growing influence extends beyond business. He has joined forces with Vivek Ramaswamy in co-leading a new initiative called the Department of Government Efficiency, aimed at slashing federal expenditures. This collaboration places Musk in a powerful position to shape the future of U.S. government spending and regulations, potentially benefiting his business empire further.
The court ruling, issued by Chancellor Kathaleen McCormick of the Delaware Chancery Court, reaffirmed her earlier decision from January. She deemed Musk’s pay package unfair and inadequately disclosed to Tesla shareholders when first introduced in 2018. Tesla, however, remains defiant, announcing plans to appeal the decision, arguing that the ruling undermines shareholder authority.
While the legal battle over Musk’s Tesla pay deal continues, his financial and political clout seems only to expand, leaving little doubt about his growing dominance in business and beyond.
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