The Delaware Supreme Court has handed Elon Musk a massive legal victory, officially reinstating the 2018 compensation package that solidified his status as the world’s wealthiest individual. The ruling reverses a previous 2024 decision that had voided the deal, which is now valued at approximately $150 billion due to Tesla’s surging stock price.
The state’s highest court acknowledged that the 2018 approval process was flawed, agreeing with previous findings that Tesla’s board was likely too close to Musk to remain impartial. However, the justices argued that completely stripping Musk of his earnings was an extreme overreach.
The court noted that because Musk successfully led Tesla to hit aggressive targets—including a market valuation exceeding $1 trillion—leaving him "uncompensated for six years of effort" was unjust. Consequently, the board was issued a symbolic fine of only $1 for its procedural errors.
The legal battle followed a turbulent timeline:
The reinstatement of the 2018 deal effectively cancels a newer, $1 trillion incentive plan that was proposed in November 2025. Tesla had previously stated that the $1 trillion package would only move forward if the 2018 deal remained dead.
Meanwhile, the legal team representing Richard Tornetta—the shareholder who sparked the lawsuit—saw their requested compensation slashed. Originally seeking $7 billion in Tesla stock, the Supreme Court awarded them just $54.5 million in fees.
This case has had ripple effects far beyond Tesla. The initial uncertainty surrounding Delaware’s corporate laws led Musk to move Tesla’s incorporation to Texas, with companies like Coinbase and Dropbox following suit by moving to Nevada. In an effort to prevent more departures, Delaware has since updated its laws to make it more difficult for shareholders to challenge executive pay deals.
December 2025, Cryptoniteuae