Kathmandu, The world’s richest person, Elon Musk, has secured a massive legal win after the Delaware Supreme Court overturned a previous ruling that had canceled his 2018 compensation package. Originally valued at $56 billion, the package is now worth approximately $139 billion due to the surge in Tesla’s stock price.
The ruling provides significant relief to Musk, solidifying his control over Tesla—a concern he has voiced repeatedly in recent years.
Reversal of Lower Court: The Supreme Court overruled Judge Kathleen McCormick’s earlier decision, which had labeled the deal “unfathomable.”
A Matter of Fairness: In the 49-page verdict, the court stated that canceling the entire package was “unfair and unjust,” noting it would have left Musk with zero compensation for six years of intensive work that led to Tesla’s exponential growth.
Increased Stake: If Musk exercises all stock options granted in the 2018 deal, his ownership in Tesla will jump from 12.4% to 18.1%.
Musk’s Reaction: Following the news, Musk posted a brief message on X (formerly Twitter): “I was proven right.”
| Year | Event |
| 2018 | Tesla Board approves the pay package tied to aggressive market value and revenue targets. |
| 2018 | Richard Tornetta, a shareholder with only 9 shares, files a lawsuit to block the deal. |
| Early 2024 | Judge Kathleen McCormick cancels the package, citing a lack of independence in the Board. |
| Dec 2025 | Delaware Supreme Court reinstates the package, calling the previous cancellation “unjust.” |
Investment analysts, including Gene Munster of Deepwater Asset Management, view this as a pivotal moment for Tesla. The ruling ensures Musk remains incentivized to lead the company’s future ventures in AI and robotics, as the targets set in 2018—which many thought were impossible at the time—have all been successfully met.
“This is a win for Musk because he regains control of the company faster.” — Gene Munster, Deepwater Asset Management
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