Elon Musk may further strengthen his position as the richest person in the world. The Supreme Court of the U.S. state of Delaware has reinstated the massive $56 billion compensation package that Tesla granted him in 2018. This bonus had been annulled in 2024 by a lower court following a lawsuit filed by a shareholder, who described the compensation as “excessive” and against shareholders’ interests.
However, the Delaware Supreme Court overturned that ruling, stating that completely revoking the compensation was unfair, given that Musk had worked for Tesla for six years (2018–2024) without receiving any pay.
WHAT DOES MUSK GAIN FROM THIS DECISION?
Thanks to the 2018 agreement, which has now been reinstated:
- Musk can purchase Tesla shares at a very low price
- His stake in the company increases from 12.4% to 18.1%
- The value of his holdings rises by approximately $139 billion
Musk called the decision a “well-deserved vindication” in a post on his social network, X. Following legal troubles in Delaware, he has moved Tesla’s headquarters to Texas.
AN EVEN BIGGER NEW BONUS
In addition to the reinstatement of the 2018 compensation package, Elon Musk has also secured an even larger new reward. After the previous compensation was annulled, he warned that he might leave Tesla if he were not granted a new package that would strengthen his control over the company. To prevent his departure, shareholders agreed to offer a new compensation scheme which—if certain targets are met—would allow Musk to increase his stake in Tesla from about 13% to roughly 25%, with a potential value reaching up to $1 trillion.
It remains unclear whether this new bonus will be added on top of the old one that has just been reinstated, and how much Musk’s actual ownership stake in Tesla will ultimately increase.