In a recent development, it has been revealed that Elon Musk and the Tesla shareholder, who successfully contested the CEO's $56-billion pay package, are now seeking a pause on the court ruling until an appeal is resolved. This information was disclosed in a letter to the court from the shareholder's attorney.

According to Greg Varallo, the attorney representing the shareholder, both sides are willing to agree to a stay if they can come to an agreement on an appeal bond. This marks the first indication that Musk intends to appeal the ruling, which he has openly criticized on social media. Additionally, Musk has expressed his intention to seek shareholder approval for the relocation of Tesla's state of incorporation to Texas, where the company's headquarters are located.

Before an appeal can be filed, both parties will propose a final order to Judge Kathaleen McCormick for approval. This order will also include a request for a legal fee, which is expected to be one of the largest ever, given the magnitude of the verdict. However, it is likely that Tesla will oppose this fee payment.

Musk and the shareholder have until March 1 to present their positions on the legal fees to the court. If McCormick approves the fees and final order, Musk will have 60 days to file an appeal with the Delaware Supreme Court. The appeal process is anticipated to take at least six months to be resolved.

As of now, there has been no comment from Musk's attorney regarding this matter.

An appeal bond serves as a safeguard for the prevailing party in court, ensuring that the losing side will make the required payment if they fail to overturn the verdict. The ruling, issued on January 30, invalidated Musk's $56-billion pay package, which primarily consisted of stock options. It is important to note that Musk has not yet exercised these options, which grant him the ability to purchase Tesla stock at a significantly reduced price, and once acquired, he must hold onto it for a minimum of five years.

The case was initiated by shareholder Richard Tornetta, who filed the lawsuit on behalf of Tesla. Shareholders have benefitted from the return of the stock options to the company. Judge McCormick's ruling stated that Musk had improperly governed the pay negotiation process and that the shareholders were lacking vital information when they voted to approve the package in 2018.