Tesla (NASDAQ:TSLA) shareholders are set to challenge a request for over $7 billion in attorneys' fees in a Delaware Chancery Court on Monday, describing the demand as "outlandish."

This dispute stems from investor Richard Tornetta's successful legal action against Elon Musk’s $56 billion compensation package, which resulted in the package being voided earlier this year.

In 2018, Tornetta, who owned nine shares at the time, initiated a lawsuit contesting Musk's substantial stock options. The litigation concluded in January with a ruling that annulled the contested pay package.

The attorneys representing Tornetta, from three law firms including Bernstein Litowitz Berger & Grossmann, have since filed for a fee that calculates to approximately $370,000 per hour for every attorney involved, based on Tesla’s current stock price.

This fee request has sparked considerable opposition from Tesla shareholders, including Nathan Chiu and the California Public Employees' Retirement System, alongside over 8,000 other stakeholders. Collectively, they have submitted around 1,500 letters of objection to the court.

The magnitude of the case has prompted a change in venue to the largest courtroom available to accommodate the 47 attorneys from 19 law firms and numerous shareholders expected to attend.

Tornetta’s legal team defends their fee request by citing the significant financial benefit they claim to have secured for Tesla, equating to the return of about 266 million shares worth approximately $67 billion today.

The hearing is pivotal in determining whether the attorneys will receive a fee that amounts to 11% of the value returned to Tesla, a figure they argue is justified by Delaware legal standards.

They have proposed receiving compensation in the form of 29 million Tesla shares.