Tesla pushes for $56bn pay deal for Elon Musk

The electrical vehicle (EV) company is asking shareholders to vote on its chief executive's record-breaking pay that was set in 2018.

Instead, the 2018 deal set rewards based on Tesla's market value rising to as much as $650bn over 10 years. Stock in the EV company is now valued at $500.36bn, according to data.

She found Tesla directors, who negotiated the deal, were "perhaps starry eyed" due to Mr Musk's "superstar appeal" and did not fully inform shareholders.

Board chair Robyn Denholm wrote in a letter included in the regulatory filing: "We do not agree with what the Delaware Court decided, and we do not think that what the Delaware Court said is how corporate law should or does work."

Musk's compensation for 2023 was $0, the filing showed, as the billionaire does not take a salary from the company and is compensated through stock options.

"If it is legally advisable, we suggest simply subjecting the original 2018 package to a new shareholder vote," Tesla said, adding that it still planned to appeal the ruling.

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