A court in Delaware has rejected Tesla's attempt to grant Elon Musk another compensation package worth over 100 billion US dollars. Judge Kathaleen McCormick ruled that the overwhelming approval of shareholders in the second vote was not sufficient to overturn the original court decision.

The decision represents a significant setback for the electric car pioneer and its CEO, who is among the richest people in the world with $343 billion. Musk's compensation model, initially introduced in 2018, was tied to ambitious corporate goals and share price developments. With acceptance of the package, Musk would have increased his stake in Tesla from just under 13 percent to over 20 percent.

The compensation plan, which was described as "the largest executive compensation model in history" at its introduction, had already been declared untenable by McCormick in February. She justified her decision by stating that the Tesla board, which approved the plan, was too closely tied to Musk. The plan was not justified by any appropriate metric.

Tesla then attempted to submit the package with expanded disclosures for a re-vote by shareholders in June. 72 percent of the shareholders voted in favor. However, McCormick emphasized in her latest decision that this measure was not sufficient to address the original concerns. Additionally, the recent documents for the shareholders were "substantially false or misleading.

Tesla announced that it would challenge the decision, calling it an infringement on shareholder rights. "This decision means that judges and lawyers, instead of shareholders, run companies in Delaware," a statement said. Musk himself sharply criticized the court and moved with his companies to Texas and Nevada to escape Delaware's influence.

Musk's political power, bolstered by generous campaign donations to the Trump administration, further fuels tensions. Observers warn that Musk's influence on the political and legal system could sway decisions in his favor.

In a partial success for Tesla, McCormick reduced the attorney fees for the plaintiff law firm Bernstein Litowitz from 5.6 billion to 345 million USD.

With this decision, the compensation package remains controversial while Tesla and Musk continue to pursue their legal and political strategies.