Delaware Supreme Court Reinstates Elon Musk's $139 Billion Tesla Stock Award, Boosting Net Worth to $749 Billion
Musk's Net Worth Surges Following Landmark Court Victory
Elon Musk, CEO of Tesla Inc. (TSLA), saw his net worth surge to $749 billion after the Delaware Supreme Court reinstated his long-disputed 2018 stock compensation package. The award, valued at $139 billion, was previously struck down by a lower court in 2024. This ruling marks a significant victory for Musk, bringing an end to a seven-year legal battle over what was once the largest paycheck in corporate history.
The reinstatement of the stock options immediately pushed Musk past the $700 billion net worth threshold, according to Forbes's billionaires index. The 2018 package was initially valued at $56 billion at the time of its approval but has grown substantially with Tesla's stock performance.
The Reinstated Compensation Package
The 2018 compensation package was designed to incentivize Musk to raise Tesla's share prices and remain with the electric vehicle company. Under the structure, Musk does not receive a salary but instead earns company stock upon meeting ambitious operational and market capitalization milestones. The Delaware Supreme Court's opinion reversed the 2024 decision from Delaware’s Chancery Court, which had previously rescinded the package, finding that Tesla’s directors were beholden to the CEO and that the approval process lacked transparency.
- The reinstated 2018 stock options are currently valued at $139 billion.
- If Musk exercises all options from this package, his stake in Tesla would increase from approximately 12.4% to 18.1% of an expanded share base.
- The ruling greenlights a financial arrangement where shareholders incentivize Musk through stock awards.
Market and Shareholder Implications
Wall Street has responded positively to the news, with analysts setting new price targets for TSLA. The stock continues to show bullish momentum, supported by the resolution of this major legal uncertainty surrounding its leadership.
Financial analysis of TSLA shows strong performance metrics over the past two years, reflecting the growth driven by Musk's leadership:
- Total Return (2 years): 94.71%
- Annualized Return (2 years): 39.54%
- Average Close Price (2 years): $290.50
- Latest Close Price: $481.20
The reinstatement of Musk’s stock options and compensation package by the Delaware Supreme Court marks a significant victory for the Tesla CEO. It not only bolsters his financial standing but also reinforces his position at the helm of Tesla Inc.
Forward-Looking Guidance and Future Pay Plans
The reinstatement of the 2018 package does not affect the more recent, even larger compensation deal approved by Tesla shareholders in November. That subsequent plan, which shareholders approved with an overwhelming 72% majority, could award Musk up to $1 trillion over a 10-year period if the company meets a new set of ambitious performance targets related to its vision for artificial intelligence and robotics.
The court's decision comes at a crucial time as Musk steers Tesla toward becoming a leader in AI and robotics, a vision that shareholders have endorsed through the massive new pay plan. The resolution of the 2018 package removes a significant legal overhang and reinforces the alignment between Musk's personal wealth and Tesla's market performance, a structure that shareholders have repeatedly supported.
