Elon Musk’s record-breaking compensation deal has been thrown out yet again by a Delaware judge

A Delaware judge ruled Monday that Tesla CEO Elon Musk is not entitled to a multibillion-dollar severance package even though shareholders agreed to it.

Chancellor Kathaleen McCormick of the Delaware Court of Chancery filed her 101-page decision on Monday. In an X post, Tesla responded to the decision and expressed its intention to appeal.

“A Delaware judge just overruled a large number of Tesla shareholders who voted twice to pay @elonmusk what he deserves,” the caption read. “The court’s decision is wrong, we will appeal the case.”

“This decision, if not overturned, means that judges and plaintiffs’ attorneys are running Delaware corporations instead of their rightful owners – the shareholders.”

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McCormick’s decision comes months after he scrapped a similar severance agreement in January, finding that Musk’s close relationship with some board members influenced negotiations and that there was insufficient evidence that the size of the package was fair.

The compensation package, also called Musk’s 2018 CEO Performance Award, will consist of 303 million shares of Tesla stock. The compensation was contingent on Tesla meeting certain milestones under Musk’s leadership.

The closing price of one Tesla stock was about $ 357 on Monday, which means that this package is about $ 108 billion, which is 12 figures.

In his ruling, McCormick wrote that shareholders had no right to “reset” the original salary package and that doing so would lead to endless litigation.

“If the court were to allow the practice of allowing the defeated parties to create new facts in order to review the decisions, the cases would be endless,” he said.

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SpaceX and Tesla founder Elon Musk speaks at an American PAC town hall on Oct. 26, 2024, in Lancaster, Pa. (Samuel Corum/Getty Images)

“A large and talented group of defense companies created the argument for confirmation, but their unprecedented views contradict many forms of established law.”

In January, McCormick said the pay package was “the largest compensation package ever — an unprecedented amount.” It was 33 times larger than the largest compensation package ever, which was Musk’s 2012 compensation plan.

Musk previously acknowledged the legal battle with X in January.

Elon Musk (Richard Bord/WireImage/Getty Images)

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“I’m not comfortable with Tesla growing to become a leader in AI and robotics without having 25% voting control,” he wrote. “Enough to be influential, but not so much that I can’t be dismissed. Unless, I’d like to build products outside of Tesla.”

FOX Business’ Eric Revell and Reuters contributed to this report.