In a recent development surrounding Tesla CEO Elon Musk's pay package, it has been revealed that the upcoming hearing on July 8, 2024, will not take into consideration the TSLA shareholder vote supporting the 2018 compensation plan. This decision comes after Tesla shareholders voted in favor of reapproving Musk's pay package during the Annual Stockholder Meeting held earlier this month.

The outcome of the vote saw Tesla investors overwhelmingly support ratifying "the 100% performance-based stock option award to Elon Musk," which had initially been approved by TSLA stockholders in 2018. However, despite this show of support, Tesla initiated efforts to convince Delaware Judge Chancellor Kathaleen McCormick to reconsider her previous verdict, which voided Musk's compensation plan.

Tesla's legal team argues that the renewed approval of Musk's 2018 pay package by TSLA investors significantly impacts the claims put forth by the plaintiff, Richard Torneeta's representation. The hearing scheduled for July 8, 2024, will specifically focus on the plaintiff's fee petition and any objections related to it.

Initially, the plaintiff's legal team had requested payment in the form of 27 million TSLA shares, valuing in billions. However, they later revised their proposed fee to $1.44 billion in cash. Meanwhile, Tesla aims to reduce the plaintiff's legal fees to a minimum of $13.6 million.

Interestingly, the upcoming July 8 hearing will not take into account the 2024 TSLA investor vote to approve Elon Musk's pay package. Both legal teams will present their arguments, omitting any mention of the recent vote by TSLA investors.

To further complicate matters, Judge McCormick has scheduled a separate meeting to discuss the 2024 TSLA shareholders' vote on Elon Musk's pay package, which will take place in late July or early August. Many Tesla investors argue that discussing the plaintiffs' legal fees might be rendered inconsequential if Judge McCormick reverses her decision after considering the TSLA vote.

The exclusion of the TSLA shareholder vote from the upcoming hearing highlights the complexity and ongoing legal battle surrounding Elon Musk's pay package. As the case unfolds, all eyes will be on the decision of Judge McCormick and the potential implications it may have on Tesla, its investors, and the compensation of its renowned CEO.