Musk told a special committee of the Tesla board soon after a judge voided his compensation in January that he wanted a similar-sized replacement package, according to a securities filing.In addition, earlier this year he said on his social media platform X that he wanted a larger stake in Tesla or he might develop some products outside the company. Musk's other companies include rocket venture SpaceX and Neuralink, which develops brain implants.
TESLA COULD APPEAL THE RULING
Musk and Tesla's board could appeal and try to reverse the ruling at the Delaware Supreme Court, a process that typically takes around a year.
The case, which involved the largest-ever pay deal at a U.S. public company, raises issues that have rarely been addressed by Delaware judges, adding uncertainty to an appeal.
TESLA COULD DEVISE A NEW PLAN
Tesla's board could craft a new pay package, although that could be very expensive.
The original plan, agreed to by Musk and the company in 2018, awarded him stock options if the company hit very aggressive performance and financial targets. The stock options allowed Musk to buy Tesla stock priced at the 2018 level. The company exceeded the targets, and Tesla's stock has risen 10-fold since then, making the options incredibly valuable.
COULD TESLA JUST RESTORE THE OLD PLAN?
Tesla could offer Musk the same 304 million stock options with the same $23.34 exercise price used in the 2018 plan.
MUSK COULD TRY TO SETTLE THE LAWSUIT
Musk could try to settle the lawsuit, which was brought by a Tesla shareholder, and accept a smaller portion of his pay package. However, that would contradict his track record of taking cases to trial rather than striking deals, even in the face of huge potential liability.