On the Dash:
- The Delaware Supreme Court reinstated Elon Musk’s $139 billion 2018 Tesla pay package, reversing a lower court ruling.
- Musk’s net worth rose to $749 billion, widening his lead as the world’s richest individual.
- The decision reinforces Tesla’s shift away from Delaware governance as shareholders back Musk’s long-term leadership and compensation plans.
Elon Musk’s net worth surged to $749 billion late Friday after the Delaware Supreme Court reinstated Tesla stock options valued at $139 billion, reversing a lower court decision that voided the compensation package last year, according to Forbes’ billionaires index.
The ruling restores Musk’s 2018 pay package, valued at $56 billion when initially granted, which had been struck down in 2024 by Delaware’s Chancery Court. The Supreme Court said that the decision was improper and inequitable, concluding that rescinding the agreement would have deprived Musk of compensation for several years of work.
The decision ends a years-long legal battle brought by Tesla shareholder Richard Tornetta, who argued the company’s board failed to meet disclosure and fairness standards when approving the deal. While reinstating the pay package, the court awarded Tornetta $1 in nominal damages and ruled his attorneys are entitled to fees. A lower court had previously awarded $345 million.
Musk’s restored stock options have grown in value to $139 billion, representing about 9% of Tesla’s market capitalization. At that level, the compensation exceeds the combined pay realized by all other S&P 500 CEOs over the decade ending last year, according to Equilar.
Earlier this week, Musk became the first person to surpass $600 billion in net worth, driven in part by reports that SpaceX is likely to go public. His fortune now exceeds that of Larry Page by nearly $500 billion, according to Forbes data.
Tesla shareholders had approved the 2018 pay package twice, most recently in June 2024, when it passed with 72% support, though the vote did not alter the lower court ruling at the time. In November, shareholders separately approved a new compensation plan that could earn Musk up to $1 trillion over 10 years, contingent on aggressive performance targets.
That newer package, issued under Texas law following Tesla’s redomiciling from Delaware, remains unaffected by Friday’s ruling. To earn its full value, Tesla must reach a market capitalization of $8.5 trillion, more than five times its current level.
Musk worked at Tesla from 2018 to 2025 without cash compensation, receiving equity grants only as the company’s market value climbed to roughly $1.6 trillion.
