Elon Musk Restores 2018 Tesla Pay Deal Worth $56 Billion As He Wins Appeal

In a landmark reversal that has sent shockwaves through the corporate world, the Delaware Supreme Court on Friday, December 19, 2025, restored Elon Musk’s 2018 compensation package. The deal, originally valued at $56 billion, had been struck down two years ago by a lower court judge who labeled the payout “unfathomable.”

The Ruling: “Inequitable” to Leave Musk Unpaid

In its 49-page opinion, the Supreme Court justices ruled that Chancellor Kathaleen McCormick’s 2024 decision to void the entire package was “inequitable.” The court noted that rescinding the deal would leave Musk “uncompensated for his time and efforts over a period of six years,” during which he grew Tesla’s market cap by hundreds of billions of dollars.

• Nominal Damages: While the court acknowledged some “breach of fiduciary duty” in how the board presented the plan to shareholders, it awarded the plaintiff—a shareholder who owned just nine shares—a mere $1 in nominal damages, rather than canceling the multibillion-dollar award.
• Musk’s Response: “Thank you for your unwavering support,” Musk posted on X on Friday evening. The ruling vindicates his long-standing campaign against the Delaware legal system, which he previously described as “hostile to tech founders.”

Wealth Explosion: From $56BN to $139BN

Because the 2018 package consists of stock options to purchase roughly 304 million shares at 2018 prices, its value has ballooned alongside Tesla’s stock price.

• Restored Value: At Friday’s closing price, the 2018 award is now worth approximately $139.2 billion.
• New Net Worth: With these options back on his balance sheet, Bloomberg’s Billionaire Index estimates Musk’s total net worth has climbed to a staggering $679 billion, cementing his position as the richest individual in human history.

The “Texas Shield”: Tesla’s Billion-Dollar Moat

The timing of the ruling is critical. Just last month, in November 2025, Tesla shareholders met in Austin, Texas, to approve a new 10-year pay plan for Musk that could be worth up to $878 billion.

To prevent future “nuisance lawsuits” from small investors like the one that tied up the 2018 deal for seven years, Tesla has utilized its new Texas incorporation:

• The 3% Rule: Under new bylaws enabled by Texas law, a shareholder must now own at least 3% of Tesla’s outstanding stock to file a derivative lawsuit against the board.
• The Barrier: A 3% stake in Tesla is currently worth approximately $30 billion—a threshold so high that Elon Musk himself is essentially the only individual capable of meeting it.

What’s Next for Tesla?