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Tesla's board faces a 'tornado situation' after Elon Musk's $55 billion pay package was struck down, analysts say

Business Insider · 1y

Tesla's board is facing a challenging time after a judge rejected Elon Musk's $55 billion pay plan. Analysts say the decision is surprising and creates uncertainty for the board, with Wall Street closely watching their next move. Musk plans to hold a shareholder vote to move Tesla's incorporation from Delaware to Texas. The court ruling found that the compensation package was excessive and criticized the board's lack of negotiation. Musk's push for greater control and pursuit of AI initiatives may face resistance from activist investors.