Any fears that the Delaware Supreme Court would upend the established order in the Tesla litigation involving Elon Musk’s compensation package were firmly allayed by the court’s much-anticipated opinion issued in late December. The per curiam opinion evinced a calculated effort by the court to simultaneously quell anti-Delaware sentiments among controlling shareholders, while maintaining judicial independence and leaving the Court of Chancery’s conclusions with respect to Musk’s control intact.
The court’s limited ruling focused on the propriety of full rescission of the package as an equitable remedy and thus left several issues untouched, such as Musk’s controller status and the ...