The dip follows a legal setback for CEO Elon Musk as a Delaware judge yet again rejected his record-breaking $56 billion compensation package despite approval from Tesla shareholders in June.
The $56bn pay package awarded by Tesla to Elon Musk in 2018 was indeed a governance abomination, a stitch-up in which ordinary shareholders weren’t told about the “deeply flawed” process whereby a “superstar ceo” secured wildly over-the-top terms from pliant directors.
McCormick also ordered Tesla to pay the attorneys who brought the case $345 million, well short of the billions they initially requested.
Tesla may also reintroduce the package in Texas, a strategy that could end up costing shareholders more.
