A Delaware judge on Tuesday ruled that Elon Musk is not entitled to a compensation package awarded in 2018 from Tesla’s board of directors that is worth more than $55 billion.
Chancellor Kathaleen St. Jude McCormick of the Delaware Court of Chancery said that Musk had overseen his generous compensation plan with the help of board members and ordered it to be voided, The New York Times reported.
The package entitled to stock options in the company when it reached specific performance targets, according to The Washington Post . Tesla shareholders sued Musk, alleging the process that led to his compensation package was improper.
“Never incorporate your company in the state of Delaware,” Musk wrote on X , formerly known as Twitter.
Musk later tweeted on the site that he owns that “I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters,” and then created a poll on the site asking his followers to vote on whether he should change his state of incorporation to Texas.