In re Tesla Inc. Derivative Action

On December 19, 2025, the Delaware Supreme Court reversed a Chancery Court decision that cancelled CEO Elon Musk’s compensation package for Tesla. The Court ruled that the trial court’s remedy of total rescission improperly left Musk “uncompensated for his time and efforts over a period of six years.” The decision was a victory for WLF, which filed an amicus brief urging reversal. WLF cautioned the Court that affirming the lower court’s cramped view of shareholder ratification would curtail shareholder democracy, invite wasteful litigation, dampen innovation, and harm Delaware’s business climate. The brief was filed with pro bono assistance from Rebecca Butcher of Landis Rath & Cobb LLP in Wilmington, Delaware.