By framing the June vote as a reward for past deeds, Tesla's board could end up making itself liable to a new legal challenge—this time against corporate waste.
The struggling EV carmaker is urging shareholders to vote again for the payout, which would be the largest ever awarded in corporate history, after a Delaware court nullified it in January. With Tesla stocks trading at their lowest in almost a year,
Tesla and Elon Musk are seizing upon an obscure provision in corporate law to attempt to restore Musk's $56 billion pay package, in an untested move that could again mire the company in litigation, legal experts said.