With a legal battle ongoing in a Delaware court over Elon Musk's Tesla pay package, the electric vehicle company is evaluating compensation for the billionaire.
As detailed by Teslarati, Musk's $56 billion pay package was initially designated in 2018. It was the largest pay package for a CEO of a public company in U.S. history. However, according to CNBC, Chancellor Kathaleen McCormick voided that package in January 2024. She believed it was unfairly awarded because Musk told the board what to pay him and didn't negotiate fairly.
Musk appealed and failed in December and appealed again in March 2025. Now, according to the Financial Times, the board could approve a new pay package in case the court doesn't rule in its favor, as Teslarati notes.
The committee includes Robyn Denholm, Tesla's board chair, and Kathleen Wilson-Thompson, an independent director, and it is tasked with creating a new pay package that includes stock options.
The committee will reportedly tie the stock options to Tesla meeting its operational, financial, and share price targets.
Musk has a hefty task in restoring Tesla to its previous profitability. According to ABC, the 2025 first-quarter earnings report showed that the company's profits had decreased 71% over the first three months of 2025.
The results fell short of what analysts expected, and the CEO's polarizing involvement in U.S. politics appeared to contribute to the slump, with nearly 40% of respondents to a Yahoo News and YouGov survey saying Musk was at least part of the reason why they wouldn't buy a Tesla.
Tying Musk's stock options to company goals could help drive innovation as consumers await the previously announced affordable EV. InsideEVs reported in April that Tesla plans to start production in June.
Unfortunately, Tesla's announced timelines don't always pan out. For example, Musk said the company would have 1 million robotaxis by 2020, but Tesla still hasn't come through on that statement.
Still, having more affordable EVs on the market would be a major win for consumers. This would mean more people could switch to EVs, which could help them save money in the long term. An EV can save you $1,500 annually on maintenance and gas.
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EVs and solar power can also help society reduce its reliance on dirty energy, which contributes to rising temperatures and air pollution.
Unfortunately, billionaires are the biggest polluters. "Fifty of the world's richest billionaires on average produce more carbon through their investments, private jets and yachts in just over an hour and a half than the average person does in their entire lifetime," according to Oxfam.
Despite Musk's environmentally friendly company, Tesla, he has a private jet collection worth $100 million. His jets produced over 11 million pounds of polluting gases in 2024.
Previously, Musk denied reports he was on his way out as Tesla CEO, and after Teslarati spotlighted reports from the Financial Times regarding Musk's compensation, readers had mixed feelings.
"Pay the Man already!!" one person said.
"He deserves fair payment for what he has contributed. Likewise, he deserves to be fired for the damage he has caused to the brand," one person wrote.
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