Overview
- Delaware’s high court unanimously reversed the Chancery Court’s rescission of Musk’s 2018 award, restoring roughly 303–304 million options now valued near $139 billion.
- Tesla met all milestones tied to the grant, and the ruling issued nominal damages of $1 while faulting the lower court’s choice of remedy despite noting governance defects.
- The decision follows years of litigation sparked by shareholder Richard Tornetta’s suit over board conflicts and disclosures surrounding the original approval.
- Tesla’s move to reincorporate in Texas stands, with new rules that require at least 3% ownership to bring certain suits, and the reinstatement averts an estimated $26 billion accounting hit from replacing the award.
- Shareholders in November approved a separate, future-focused compensation plan that could reach hundreds of billions to about $1 trillion, and Forbes now pegs Musk’s net worth at roughly $749 billion.