Tesla argues that Elon Musk has won his legal fight over his $56 billion pay package.
As per Reuters, the company asserts that shareholders' recent vote in favor of the compensation overrides a judge's earlier decision to rescind it.
Two weeks ago, Tesla shareholders voted to ratify the 2018 stock options package.
This vote followed a January ruling by Delaware Judge Kathaleen McCormick, who voided the compensation due to Musk's improper influence over the negotiation process and misleading information given to shareholders.
The case impacts Musk's relationship with Tesla, which is facing slower sales and increased competition.
While, Musk has hinted he might develop products outside the company if he doesn't secure a larger ownership stake.
Tesla's proposal for how Judge McCormick should finalize the January ruling suggests the final order should state that "judgment is entered for the defendants."
The shareholders' legal team wants the judge to uphold her original ruling voiding Musk's pay package and to order Tesla to compensate them with potentially billions of dollars in Tesla stock as legal fees.
Meanwhile, Tesla has argued that a fair fee might be as low as $13.6 million.
On Thursday, Judge McCormick ordered both sides to prepare briefs on the impact of the shareholder vote on the case and to agree on a date in late July or early August for oral arguments.
She will hear arguments regarding the legal fees on July 8 and may take a few weeks to issue a ruling.
