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Delaware Supreme Court Reinstates Musk’s 2018 Tesla Pay, Restoring Options Worth About $139 Billion

The justices deemed rescinding the award inequitable because it left him unpaid for six years even as they upheld findings that Tesla’s board was conflicted.

Overview

  • The reinstated package returns roughly 303–304 million stock options—about 9% of Tesla’s shares—with reported values ranging from about $120 billion to $179 billion depending on the share price.
  • Plaintiff Richard Tornetta received $1 in nominal damages, and the court cut previously awarded legal fees to no more than $54.5 million.
  • Forbes and other trackers reported Musk’s estimated net worth rose to about $749 billion after the ruling, making him the first person reported above $700 billion.
  • Tesla has reincorporated in Texas, where companies can require shareholders to own at least 3% to sue over certain corporate claims, a step the company has cited to reduce litigation risk.
  • Separately, shareholders in November approved a new 2025 performance-based pay plan that could be worth about $878 billion if targets are hit, and the plaintiff’s lawyers said they are considering next steps.