Tesla's Billion-Dollar Dilemma: The Quest for Musk's Mega-Deal

Elon Musk's ambitious $56 billion compensation package at Tesla faces legal hurdles after a Delaware judge ruled against it, despite shareholder support. Musk seeks a similar-sized deal, even considering external ventures. Tesla may appeal or formulate a new strategy amid complex legal and tax implications.

Tesla's ambitious compensation plan for CEO Elon Musk hit a roadblock as a Delaware judge voided the $56 billion package, despite shareholders' backing. The case introduces unique challenges to Delaware law, given Musk's significant influence despite his minority ownership stake.

In pursuit of a similarly vast pay deal, Musk has expressed interest in enhancing his stake in Tesla or possibly developing parallel projects outside the company. The board faces difficult decisions: appeal the ruling, devise a costlier new plan, or revamp the original without incurring hefty taxes or accounting complications.

Complicating matters, a reinstatement of the 2018 plan could burden Tesla with a $25 billion charge and significant tax penalties. While Musk could settle for a lesser package, his history suggests he's more inclined towards litigation than compromise.

(With inputs from agencies.)