Shares of Tesla slipped in after-hours trading Monday following the news that a Delaware judge for a second time moved to strike down a multibillion-dollar pay package for CEO Elon Musk.

Tesla's (TSLA) stock, which rose more than 3% in Monday's regular session, was off more than 1% in late action.

The decision by Chancellor Kathaleen McCormick upholds her own, earlier, ruling invalidating the package, which was valued above $50 billion. That decision was followed in June by a shareholder vote to approve the pay package. Tesla and Musk can appeal the latest ruling, according to reports.

"The court’s decision is wrong, and we’re going to appeal," Tesla said on X, the social platform owned by Musk.

Musk, who in addition to Tesla runs several other multibillion-dollar companies and has lately been active in President-elect Donald Trump's administration, is the world's wealthiest person.

The package, challenged on the grounds that it was excessive and approved by a board not sufficiently independent of Musk, was defended in part by the notion that Musk should be compensated generously to keep him engaged on his work at Tesla.

This article has been updated to include the Tesla statement.

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