Will Elon Musk Ever Collect His Full Tesla Pay Package?

What now for Musk and Tesla?

Elon Musk has been on a winning streak since the election. But a Delaware judge just dealt the Tesla C.E.O. a blow, refusing to reinstate his huge pay package despite investors approving the compensation by a wide margin in June.

Tesla said it would appeal the verdict. But it’s unclear if or how Musk will escalate the fight, especially given that he now has powerful allies in Washington as President-elect Donald Trump prepares to take office.

A recap: In 2018, Tesla set out several performance milestones that Musk needed to hit to qualify for a huge grant of stock options. He did, becoming eligible for compensation that is now valued at $100 billion.

But Chancellor Kathaleen McCormick of the Delaware Court of Chancery voided the plan, agreeing with a shareholder who argued that Tesla’s board was too beholden to the company’s chief when it devised the package.

Winning the June vote didn’t guarantee a payout for Musk. Yes, the compensation plan was backed by holders of 72 percent of Tesla shares not owned by himself or his brother, Kimbal Musk. The wide support suggested that the automaker’s shareholders believed that the company’s fortunes were tied to keeping its C.E.O. happy. (Tesla’s shares were down about 1 percent in extended hours trading.)

But in Monday’s ruling, McCormick said that the new shareholder vote didn’t resolve the issues she had with the plan.