US court denies Tesla CEO Musk $55 billion compensation

A court in the US state of Delaware has ruled that Tesla CEO Elon Musk is not entitled to a huge compensation package worth about 55 billion dollars.

The electric vehicle manufacturer introduced a scheme in 2018 which called for Musk to receive billions of dollars when the company reached certain market capitalization and operational milestones.

Some Tesla shareholders saw the payments as excessive and the compensation scheme as problematic. They filed a lawsuit with Delaware's Court of Chancery.

On Tuesday, the judge sided with the shareholders and invalidated the planned payment.

Musk shot back with a post on X, saying, "Never incorporate your company in the state of Delaware."

The court also pointed out that Tesla's board lacked independence in deciding on the payment scheme, as many of its directors have close personal ties with Musk.