U.S. court rules Musk 'Article 142 stock options' invalid again

A U.S. Delaware court has repeatedly ruled that Tesla's stock option to pay CEO Elon Musk 300 million shares was invalid.

Judge Catherine McCormick pointed out that the lawsuit would go on endlessly if the losing party were allowed to create a new situation to overturn the outcome.

Earlier, Tesla asked the court to review the compensation after it passed it again at a shareholders' meeting in June after a court ruling that the compensation plan giving Musk a large stock option was invalid.

The compensation plan, which was first approved in 2018, was to pay 303 million shares, equivalent to a 7% stake in Tesla, if Musk achieves his management goals, including $650 billion in market capitalization.

The value of the compensation plan is 111.5 billion dollars based on the latest closing price of Tesla shares and 142.7 trillion won in our money.

While Musk has not yet expressed his position on the ruling, Tesla said in a post on X that the ruling was wrong for ignoring the will of the absolute majority of shareholders and that it would appeal.