Lawyers for Tesla have asked a Delaware judge to reverse her decision to void a multibillion-dollar pay package for Mr. Musk after shareholders approved it a second time in June.
The vote was seen as a referendum on his management of the electric car maker and on the limits of executive pay.
The vote is seen as a referendum on the limits of executive pay and the accountability of Silicon Valley billionaires.
The company’s directors are asking shareholders to again approve the multibillion-dollar compensation plan and to move the company’s registration to Texas, from Delaware.
The company’s board of directors will now decide whether to appeal the decision, change where Tesla is incorporated or negotiate a new pay package.
Shareholders had sued, arguing that Mr. Musk’s compensation — which helped make him the world’s richest person — was excessive.
A shareholder is asking the court to void a 2018 compensation package that has paid the chief executive nearly $50 billion.