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Tesla and Elon Musk to appeal $56B pay package decision

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Tesla and its CEO Elon Musk have said they will appeal the decision to rescind his $56 billion pay package, as a Delaware Judge ruled last month that the payday was too lucrative and not in the best interest of investors after a shareholder opposed it.

Tesla and Musk will ask Delaware Chancery Court Judge Kathaleen McCormick to pause her ruling, which eliminated the CEO’s possibility of collecting a $56 billion pay package that rewarded him for reaching various tranches that pushed for company growth.

Elon Musk’s Tesla pay package gets voided, Judge rules in favor of shareholder

A letter from the attorney representing the shareholder who opposed Musk’s pay package on Tuesday states that Tesla and Musk will appeal the ruling. Musk has been openly critical of Delaware’s handling of the situation, threatening to move Tesla’s state of incorporation to Texas, where its headquarters is located.

Greg Varallo, the attorney representing the shareholder, said they hope to reach a deal on an appeal bond and would agree to a stay in the case. An appeal bond ensures the losing party will pay if the defendant fails to overturn the decision in a case.

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The court filing that showed Musk’s intention to appeal the decision said that the Tesla CEO and the shareholder would tell the court their position on fees by March 1.

Reuters initially reported on the intention of appeal from Musk and Tesla.

Musk will have sixty days to file an appeal with the Delaware Supreme Court if Judge McCormick approves the fee and final order.

Shareholders overwhelmingly supported the pay package when it was voted on in 2018. However, Judge McCormick said in her over 200-page ruling that rescinded the payday for Musk that shareholders were not properly informed, and Musk controlled the negotiations.

McCormick said in the ruling:

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“With a $55.8 billion maximum value and $2.6 billion grant date fair value, the plan is the largest potential compensation opportunity ever observed in public markets by multiple orders of magnitude—250 times larger than the contemporaneous median peer compensation plan and over 33 times larger than the plan’s closest comparison, which was Musk’s prior compensation plan.”

She then decided in the favor of Richard Tornetta, who brought on the suit.

Musk was immediately critical of the decision, warning others to “never incorporate your company in the state of Delaware.”

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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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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Starlink to launch on United Airlines planes by May 15

Select United Airlines passengers will get free Starlink internet, with 200+ Mbps speeds. Early testers streamed MLB & live news with ease.

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(Credit: United Airlines)

Starlink will launch on United Airlines planes by May 15, 2025, providing select passengers with free internet inflight.

Recently, Sean Cudahy from The Points Guy tried out United Airlines’ free Starlink Wi-Fi. The airline invited a few media to try out Starlink Aviation Wi-Fi before its official launch.

According to Cudahy, connecting to Starlink was easy. All he had to do was take out his phone and connect to the Unitedwifi.com network, which took him to a landing page. Once he clicked “get started” on the landing page, it opened the United mobile app on his phone.

The United app verified Cudahy’s status as a MileagePlus member. After that, all he had to do was click on “connect,” and he was all set. Starlink’s speed was reliable and just what passengers would need on a long flight.

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“I ran a speed test, and it clocked the Wi-Fi at 217 Mbps of download speed, and 26.8 Mbps of upload speed,” noted Cudahy.

Cudahy added that connection to Starlink Wi-Fi on his other devices, like his tablet, was easier. All he had to do was scan a QR code on his phone from his tablet.

“United certainly isn’t exaggerating on the speed of the service: I was able to simultaneously watch a live news feed about the selection of a new Pope on one device, and stream a live Major League Baseball game on another,” The Points Guy noted in his review of Starlink Aviation.

United Airlines is offering Starlink services for free to MileagePlus members. Based on Cudahy’s experience, it’s best to download the United mobile app before your flight.

United Airlines expects to equip all 300 of its Embraer 175 planes with Starlink by the end of the year. It plans to install 40 regional jets with Starlink equipment every month.

Last month, the Federal Aviation Administration (FAA) approved United Airlines’ Starlink-equipped planes. United plans to roll out Starlink Wi-Fi across all its flights. It is currently working to receive FAA approval to install Starlink equipment on over 16 aircraft models.

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Ark Invest sees potential in xAI as the world adopts more AI models

Ark’s new stake in xAI bets on Musk’s future plans. Will the newly merged companies deliver the next AI breakthrough?

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Credit: x.AI

Ark Invest reinvested in X Corp in Q1 2025 through its Ark Venture Fund, which converted into a position in xAI, Elon Musk’s artificial intelligence company.

In March, xAI acquired X, intertwining the two companies’ futures. The stock merger values xAI at $80 billion and X at $33 billion. After xAI acquired X, Elon Musk noted that the combined company would unlock “immense potential.” Ark Invest believes in Musk’s vision for xAI and X Corp.

“…the deal created a new combined entity called XAI Holdings Corp., a strategic union that integrates xAI’s cutting-edge foundational models with X’s massive user base of over 600 million strong to unlock a platform that blends real-time communication with AI-enhanced discovery, truth-seeking, and personalized knowledge delivery.

“We believe this merger will be a significant catalyst for consumer AI adoption and foundational model monetization,” Ark noted.

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Musk is reportedly planning a valuation adjustment for xAI. CNBC’s David Faber noted in April that Musk hinted at a new funding round for his artificial intelligence startup during an investor call.

The merger supports Musk’s vision to transform X into an “everything app,” where people can communicate, make monetary transactions, catch up on news, and more. xAI is already working on providing financial services. It recently partnered with TWG Global and Palantir to integrate AI with financial services.

In addition, XAI Holdings also has X Money, a payment system that could rival Venmo, Zelle, and Apple Pay. X Corp. secured a Visa partnership in January and money-transmitter licenses in 42 states, including California, in September 2024.

X Money faces opposition in New York from Manhattan Democrats Assemblymember Micah Lasher and state Sen. Brad Hoylman-Sigal, who sent a letter Monday to the state’s Department of Financial Services, urging rejection of X Corp.’s money-transmitter license. The lawmakers cited Musk’s leadership as a risk to consumer data and financial infrastructure.

Ark’s investment in xAI underscores confidence in its AI-driven future, amplified by the XAI Holdings merger. As xAI leverages X’s platform to scale AI innovation, Ark’s stake positions it to benefit from a transformative shift in consumer AI and fintech, despite ongoing challenges.

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Starlink Direct to Cell to boost remote businesses in Chile

Entel teams up with Starlink Direct to Cell to power SMEs & industries in Chile’s remote regions. Remote businesses get a major tech upgrade.

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(Credit: SpaceX)

Entel will provide Starlink Direct to Cell services to businesses in Chile and Peru, boosting connectivity in underserved regions.

Entel is Chile’s leading telecommunications provider. Its strategic collaboration leverages Starlink’s Direct to Cell service by offering advanced internet solutions to small and medium-sized enterprises (SMEs) and large corporations.

The partnership targets industries like mining, agriculture, and forestry, which often face connectivity challenges in remote areas. By tapping into Starlink’s low-latency satellite constellation, Entel aims to bridge these gaps, driving innovation and competitiveness.

The collaboration with Entel follows Starlink’s April expansion in Brazil, where its internet was integrated into John Deere’s agricultural equipment. Through its mobile app, Starlink provided Brazilian farmers with live video feeds, sensor data, and real-time sharing.

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Entel’s Starlink Direct to Cell service includes value-added features such as 24/7 network monitoring, proactive management, and dedicated technical support. An observability feature will allow businesses to track real-time connectivity performance through web or mobile applications, enhancing operational efficiency.

The service’s accessibility to SMEs is a key focus. Starlink Direct to Cell is expected to empower small businesses to engage in e-commerce, improve customer communication, and expand digital operations.

Starlink’s Direct to Cell expansion into Peru underscores Entel’s regional ambitions, positioning it as a leader in Latin America’s business connectivity landscape. While details of the Peruvian rollout remain forthcoming, the move aligns with the region’s post-COVID-19 economic recovery. Reliable internet is critical for businesses to adopt cloud-based technologies and access global markets.

Starlink’s growing influence in Latin America highlights its role in transforming connectivity for underserved areas. Entel’s partnership strengthens its portfolio and helps businesses navigate a digital economy. As industries in Chile and Peru leverage Starlink’s capabilities, the collaboration could set a precedent for regional telecom providers, fostering innovation and economic growth across diverse sectors.

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