Core Points - Tesla has appealed to the Delaware Supreme Court regarding CEO Elon Musk's $56 billion compensation plan, which was previously supported by shareholders but rejected by the Delaware Chancery Court [1][3] - The controversy surrounding Musk's compensation plan has persisted for several years, with initial approval from shareholders in 2018 contingent on Musk achieving performance targets linked to company growth [3] - A lawsuit questioning the legality of the compensation plan was filed by a shareholder in January 2024, leading to a ruling that the Tesla board lacked independence during the 2018 approval, deeming the compensation arrangement unenforceable [3] - Despite a second shareholder vote in 2024 reaffirming support for the compensation, the plan was again rejected by the Delaware Chancery Court [3] - Tesla's legal team argues that the 2024 shareholder vote reflects investor intent and should resolve the dispute, emphasizing the vote's transparency and thoroughness [3] - In September 2024, Tesla proposed a new compensation plan for Musk, which could potentially yield up to $1 trillion, contingent on achieving strict performance targets, including reaching an $8.5 trillion market valuation [4]

Elon Musk's lawyers will urge the Delaware Supreme Court on Wednesday to restore his $56 billion pay package from Tesla , as one of the biggest corporate legal battles enters its final stage nearly tw... ...