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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

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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.

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:

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“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.

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.”

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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.

She said:

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“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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Cybertruck

Tesla Cybertruck is officially the safest pickup, IIHS says

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Credit: Tesla

The Insurance Institute for Highway Safety (IIHS) has awarded the 2025-2026 Tesla Cybertruck crew cab pickup its highest honor: Top Safety Pick+. This marks the Cybertruck as the only full-size pickup to achieve this distinction in recent evaluations.

The award applies specifically to vehicles built after April 2025, following structural upgrades including front underbody reinforcements and footwell modifications.

These changes enabled strong performance in updated crash tests. The Cybertruck earned “Good” ratings in the small overlap front (driver and passenger sides), updated moderate overlap front, and updated side tests—core requirements for the Top Safety Pick+ designation.

It also secured acceptable or good headlights across trims and a “Good” rating for its standard front crash prevention system in pedestrian scenarios, along with acceptable or good performance in vehicle-to-vehicle testing.

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The Cybertruck avoided every single pedestrian collision, including:

  • Daytime child crossing
  • Nightitime adult crossing
  • Night parallel adult

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In the large pickup category, competitors such as the Toyota Tundra received only a standard Top Safety Pick, while the Ford F-150 and Ram 1500 did not qualify for either award. This positions the Cybertruck as a standout in occupant protection and crash avoidance among its peers.

Credit: IIHS

Ironically, the same vehicle celebrated for superior U.S. safety performance remains banned from public roads in the United Kingdom and much of Europe. Regulators there cite the Cybertruck’s sharp external edges and highly rigid stainless-steel construction as failing pedestrian-protection standards. European and UK rules require rounded surfaces on protruding parts to minimize injury risk in collisions with vulnerable road users.

Critics also point to the truck’s substantial weight and unyielding body structure, which some argue could transfer more force to other vehicles or pedestrians rather than absorbing it.

Tesla’s engineering philosophy underpins the Cybertruck’s strong IIHS results. The vehicle features a distinctive stainless-steel exoskeleton made from ultra-hard 30X cold-rolled stainless steel. This provides exceptional structural rigidity and a robust safety cage that resists deformation in side impacts and rollovers.

Engineers designed integrated load paths to channel crash forces away from the occupant compartment while allowing controlled energy absorption in key zones. Post-April 2025 refinements to the front underbody further optimized performance in overlap crashes.

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Complementing the passive structure is Tesla’s advanced active safety suite, including the standard Collision Avoidance Assist system with automatic emergency braking. This contributed directly to the vehicle’s strong front crash prevention scores. The skateboard platform and low center of gravity also enhance stability and handling, reducing the likelihood of certain crashes.

The IIHS recognition highlights how Tesla’s combination of high-strength materials, structural innovation, and software-driven safety systems can deliver top-tier protection in rigorous testing. While global regulatory differences on design and pedestrian interaction continue to limit the Cybertruck’s availability outside North America, its U.S. safety credentials set a new benchmark for full-size pickups.

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Elon Musk

SpaceX’s newest Starmind will make earth data centers obsolete

Elon Musk confirmed Starmind as SpaceX’s AI satellite constellation name, targeting one million orbital compute nodes.

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Elon Musk confirmed that Starmind will be the official name of SpaceX’s planned AI satellite constellation, following a trademark filing by xAI that surfaced earlier this week. Starmind is what’s being described to the FCC as a constellation of up to one million AI satellites

It’s worth noting that SpaceX’s Starlink communication satellite and Starmind are built on the same orbital infrastructure concept but serve entirely different purposes. Starlink is a connectivity network, with satellites receiving and relaying data between points on Earth, and functioning as a high-speed internet backbone in space. The satellites themselves do not process or think, and move information from one place to another, the same function a fiber cable performs underground.

SpaceX just forced Verizon, AT&T and T-Mobile to team up for the first time in history

Starmind, on the other hand, is something completely different, and tather than moving data, its satellites would compute data through artificial intelligence and directly in orbit using onboard processors powered by large solar arrays. Where a Starlink satellite is essentially a very fast pipe, a Starmind satellite is a server. The practical implication is that Starmind would allow AI models to run inference, process queries, and generate outputs from space, then beam results down to users anywhere on Earth within milliseconds, and without the data ever needing to travel to a terrestrial data center.

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Starship will be able to carry 30 to 50 AI1 satellites per launch, delivering the equivalent of dozens of server racks per flight, with no land acquisition, no power grid approval, and no cooling infrastructure required on the ground.

SpaceX is pursuing this new technology as terrestrial data centers are running into hard limits such as lack of physical space, community opposition, and power and water consumption at a scale that is increasingly difficult to permit. Space has unlimited solar power, natural vacuum cooling, and no zoning boards. Musk said in a June 8 video presentation that he expects space to become the lowest-cost location to deploy AI compute within two to three years. Two AI1 prototypes are scheduled to launch in early 2027, with volume production targeted for the end of that year at a new facility called Gigasat.

The real world applications Starmind enables extend well beyond powering Grok. A constellation of orbiting AI processors could run inference workloads for any paying customer, anywhere on Earth, with latency measured in milliseconds rather than the seconds associated with ground-based cloud routing across continents. Starmind, if it scales as described, would make SpaceX the landlord of AI compute the same way Starlink made it the landlord of satellite internet.

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Tesla pushes back against unfair reporting of accidents

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tesla
(Credit: Tesla)

Tesla is pushing back against the unfair reporting of accidents involving its vehicles. Many media outlets were quick to jump to conclusions about a fatal accident involving a Tesla in Katy, Texas, that happened recently.

The driver of the vehicle, which slammed into a brick house and killed a woman inside, stated the car was operating on Autopilot. Tesla CEO Elon Musk and Head of AI Ashok Elluswamy both challenged that claim, with Elluswamy revealing last night that the system was overridden by the driver, who pressed the accelerator pedal “all the way to 100%.”

Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration

The car reached a speed of 73 MPH during the crash, Elluswamy detailed, and stated that the accelerator pedal was even pressed after the crash.

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The story has been spread throughout the media with either incomplete or incorrect reporting, with some stories still not updated nearly 24 hours after Musk and Elluswamy posted answers about the crash on X.

The reporting has been a thorn in the side of Tesla for several years. Vehicle accidents involving Teslas are usually reported with the manufacturer’s name in the headline, while other companies are free of criticism when their cars are involved in accidents.

Here’s an example of that:

Many media outlets stated the car was in “self-driving mode” or “Autopilot mode” when the car crashed. The truth is, now that Tesla has chimed in, that the driver had manually overriden the system by pressing the accelerator. Elluswamy commented on the unfair reporting:

“This blatantly irresponsible reporting does more harm to people than they realize.

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Using Tesla self-driving is far safer than manual driving, and this was measured over 10B miles.

Planting such FUD in the minds of general public, who might not know the all the facts, might prevent them from using this technology that makes them safer.”

The damage these headlines do to Tesla and the self-driving car movement is unexplainable. Most people do not realize the safeguards that are in place with Tesla’s self-driving functions; many people who have used it know the car would never travel at that speed in a residential area, not even on the most aggressive “Mad Max” setting.

It is important to remember that Tesla Full Self-Driving is not autonomous, and the company never claimed it was. Drivers are still responsible for paying attention and remaining vigilant. They must be able to take over at all times.

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