A judge has said Elon Musk must give up a compensation package awarded by Tesla’s board of directors that is potentially worth more than 55 billion dollars (£43.4 billion).

The ruling in a Delaware court comes five years after a shareholder lawsuit targeted Tesla chief executive Mr Musk and the directors.

They were accused of breaching their duties to the electric vehicle and solar panel manufacturer, resulting in a waste of corporate assets and unjust enrichment for Mr Musk.

Lawyers for the plaintiffs argued that the pay package was dictated by Mr Musk and was the product of sham negotiations with directors who were not independent of him.

Defence lawyers said the pay plan was fairly negotiated by a committee of independent directors, contained lofty performance milestones, and was blessed by a shareholder vote that was not even required.