Elon Musk's Tesla Pay Package Reinstated by Delaware Supreme Court

The Delaware Supreme Court restored Elon Musk's $56 billion 2018 Tesla pay package, which was previously rescinded by a lower court. The ruling, overturning the initial decision, allows Musk to receive compensation for Tesla's transformation into a leading company, although a larger pay deal has since been approved.

The Delaware Supreme Court has reinstated Elon Musk's 2018 Tesla pay package, initially valued at $56 billion. This decision reverses a lower court ruling that had scrapped the deal, causing controversy and affecting Delaware's reputation as a business-friendly state.

The high court's decision addresses the equitable rights, asserting that rescinding the package entirely left Musk uncompensated for his contributions over six years. Tesla, however, did not immediately comment on the court's latest ruling, while Musk expressed his satisfaction on social media. This outcome allows Musk to benefit from his historical contributions, supporting Tesla's exponential growth into a major player in the global automotive industry.

The reinstated deal allows Musk options to secure around 304 million Tesla shares at a favorable rate contingent upon milestone achievements, significantly augmented by the company's stock value growth. A newer pay plan, approved by shareholders in November, could potentially eclipse this compensation in value if Tesla meets future strategic targets.