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Tesla CEO Elon Musk denied $56bn pay package once again by Delaware judge

Ministério Das Comunicações, CC BY 2.0 , via Wikimedia Commons

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Tesla CEO Elon Musk was once again denied the $56 billion pay package by Delaware Chancellor Kathaleen McCormick, who previously ruled the sum should not be paid to Musk.

Tesla shareholders voted after the initial rejection of the massive pay package that was awarded to Musk for achieving several tranches related to company growth to award the CEO with the money.

McCormick once again denied the pay package. This comes 11 months after the first rejection, which occurred in January.

Tesla CEO Elon Musk’s $56bn pay package decision to come before end of year

The pay package was challenged by shareholder Richard J. Tornetta, who owned only a handful of Tesla shares. McCormick ruled in January that Musk’s “unfathomable sum” was unfair to shareholders.

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However, it appears the weight of one shareholder and one chancellor outweighs that of a majority of Tesla shareholders who voted overwhelmingly this past Summer to award Musk the money once again.

However, on Monday, Chancellor McCormick once again said Musk should not be awarded the sum.

Tesla responded:

“A Delaware judge just overruled a supermajority of shareholders who own Tesla and who voted twice to pay @elonmusk what he’s worth. This ruling, if not overturned, means that judges and plaintiffs’ lawyers run Delaware.”

Perhaps what is most baffling about the ruling by McCormick is the fact that Tesla will be forced to pay $345 million in fees to lawyers who represented Tornetta and other shareholders. The lawyers, at one time, requested more than $5.5 billion from the case, and they wanted it in the form of Tesla stock.

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Those lawyers said in a statement (via The New York Times):

“We hope that the chancellor’s well-reasoned decision will end this matter for the shareholders of Tesla.”

They also said that they are looking forward to defending the judgment if Tesla decides to appeal. The company said it will be appealing McCormick’s decision.

Vivek Ramaswamy calls Elon Musk’s Tesla pay package situation ‘a threat to capitalism’

It also seems Chancellor McCormick did not believe the shareholder vote and subsequent board vote were not a reasonable way to reinstate the pay package.

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She said:

“Were the court to condone the practice of allowing defeated parties to create new facts for the purpose of revising judgments, lawsuits would become interminable.”

Need accessories for your Tesla? Check out the Teslarati Marketplace:

Please email me with questions and comments at joey@teslarati.com. I’d love to chat! You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla Model Y proudly takes its place as China’s best-selling SUV in May

The Model Y edged out competitors like the BYD Song Plus.

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Credit: Tesla China

The Tesla Model Y claimed its position as China’s best-selling SUV in May, with 24,770 units registered, according to insurance data from China EV DataTracker

The Model Y edged out competitors like the BYD Song Plus, which recorded 24,240 registrations, as well as Geely’s gasoline-powered Xingyue L, which took third place with 21,014 units registered, as noted in Car News China report.

Return To The Top

The Model Y’s return to the top of China’s SUV market follows a second-place finish in April, when it trailed the BYD Song Plus by just 684 units. Tesla China had 19,984 new Model Y registrations in April, while BYD had 20,668 registrations for the Song Plus. 

For the first five months of 2025, Tesla sold 126,643 Model Ys in China, outpacing the Song Plus at 110,551 units and BYD’s Song Pro at 80,245 units. This is quite impressive as the new Tesla Model Y is still a premium vehicle that is significantly more expensive than a good number of its competitors.

Year-Over-Year Challenges

Despite its SUV crown, Tesla’s year-over-year performance in China is still seeing headwinds. May sales totaled 38,588 units, a 30% year-over-year decline. From January to May, Tesla delivered 201,926 vehicles in China, a 7.8% drop year-over-year. These drops, however, are notably affected by the company’s changeover to the new Model Y in the first quarter.

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Exports from Tesla’s Shanghai Gigafactory also fell, with 90,949 vehicles being shipped from January to May 2025. This represents a decline of 33.4% year-over-year, though May exports rose 33% to 23,074 units.

China’s electric vehicle market, meanwhile, showed robust growth. Total NEV sales, which includes battery electric vehicles (BEVs) and plug-in hybrids (PHEVs), reached 1,021,000 units in May, up 28% year-over-year. BEV sales alone hit 607,000 units, a 22.4% increase.

Considering the fact that China’s BEV market is extremely competitive, the Tesla Model Y’s rise to the top of the country’s SUV rankings is extremely impressive.

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Waymo temporarily halts service in select San Francisco and LA areas amid protests

The suspensions came after several Waymo Jaguar I-Pace robotaxis were vandalized and set ablaze during the demonstrations.

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Credit: ABC7/YouTube

Waymo, Alphabet’s autonomous vehicle subsidiary, has suspended its driverless taxi operations in parts of Los Angeles and San Francisco amid violent protests linked to U.S. Immigration and Customs Enforcement (ICE) raids in the state. 

The suspensions came after several Waymo Jaguar I-Pace robotaxis were vandalized and set ablaze during the demonstrations.

Waymo Catches Strays Amid Anti-ICE Protests

Protests erupted in Los Angeles and San Francisco in response to the Trump administration’s immigration raids, which ultimately resulted in California Governor Gavin Newsom calling the White House’s deployment of National Guard troops unconstitutional. 

Amidst the protests, images and videos emerged showing several Waymo robotaxis being defaced and destroyed. At least five Waymo robotaxis ended up being caught in the crossfire, and at least one vehicle ended up being burned to the ground. 

The incident resulted in the Los Angeles Police Department advising people to avoid downtown areas due to toxic fumes from the robotaxis’ burning lithium-ion batteries. As noted in a KRON4 report, Waymo ultimately halted service in affected areas “out of an abundance of caution.”

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Robotaxi Sentiments

The cost of the attacks is notable. Each Waymo robotaxi is valued between $150,000 and $200,000, per a 2024 Wall Street Journal report. Interestingly enough, this is not the first time that Waymo’s robotaxis ended up on the receiving end of angry protesters. On February 24, a Jaguar I-PACE robotaxi was set ablaze and vandalized by a crowd in San Francisco. Videos taken at the time showed a mob of people attacking the vehicle. 

Despite the recent attacks on its robotaxis, Waymo has stated it has “no reason to believe” its vehicles were specifically targeted during the protests, as per a report from The Washington Post. A company spokesperson also noted that some of the Waymo robotaxis that were defaced and destroyed during the violent demonstrations had been completing drop-offs near the protest zones.

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Investor's Corner

xAI targets $5 billion debt offering to fuel company goals

Elon Musk’s xAI is targeting a $5B debt raise, led by Morgan Stanley, to scale its artificial intelligence efforts.

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(Credit: xAI)

xAI’s $5 billion debt offering, marketed by Morgan Stanley, underscores Elon Musk’s ambitious plans to expand the artificial intelligence venture. The xAI package comprises bonds and two loans, highlighting the company’s strategic push to fuel its artificial intelligence development.

Last week, Morgan Stanley began pitching a floating-rate term loan B at 97 cents on the dollar with a variable interest rate of 700 basis points over the SOFR benchmark, one source said. A second option offers a fixed-rate loan and bonds at 12%, with terms contingent on investor appetite. This “best efforts” transaction, where the debt size hinges on demand, reflects cautious lending in an uncertain economic climate.

According to Reuters sources, Morgan Stanley will not guarantee the issue volume or commit its own capital in the xAI deal, marking a shift from past commitments. The change in approach stems from lessons learned during Musk’s 2022 X acquisition when Morgan Stanley and six other banks held $13 billion in debt for over two years.

Morgan Stanley and the six other banks backing Musk’s X acquisition could only dispose of that debt earlier this year. They capitalized on X’s improved operating performance over the previous two quarters as traffic on the platform increased engagement around the U.S. presidential elections. This time, Morgan Stanley’s prudent strategy mitigates similar risks.

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Beyond debt, xAI is in talks to raise $20 billion in equity, potentially valuing the company between $120 billion and $200 billion, sources said. In April, Musk hinted at a significant valuation adjustment for xAI, stating he was looking to put a “proper value” on xAI during an investor call.

As xAI pursues this $5 billion debt offering, its financial strategy positions it to lead the AI revolution, blending innovation with market opportunity.

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