Tesla CEO Elon Musk’s personal fortune has surged to an estimated US$749 billion after the Delaware Supreme Court reinstated his long-disputed 2018 Tesla compensation package, reversing a lower court decision that had voided the award.
According to Forbes’ real-time billionaires index, the ruling restored stock options currently valued at about US$139 billion, instantly cementing Musk’s position as the wealthiest individual in modern history and widening the gap between him and other global billionaires.
The pay package, originally approved by Tesla shareholders in 2018, was designed as a highly ambitious, performance-based plan. It tied Musk’s compensation entirely to Tesla hitting a series of market capitalisation, revenue and operational milestones, with no guaranteed salary or cash bonus. At the time, the package was valued at roughly US$56 billion, but Tesla’s meteoric rise over subsequent years dramatically inflated its worth.
In January 2024, a Delaware Chancery Court judge struck down the package, arguing that Tesla’s board had failed to adequately demonstrate that the deal was fair and properly negotiated, citing Musk’s influence over the company and its directors. That decision sent shockwaves through corporate America, raising concerns about executive compensation structures, shareholder approvals and judicial oversight.
Friday’s Supreme Court ruling overturned that judgment, concluding that shareholders had been sufficiently informed and that the compensation framework, while unprecedented in scale, reflected the extraordinary performance targets Musk was required to meet. The court emphasised the importance of respecting shareholder votes, particularly in cases involving transparent, outcome-based pay structures.
The decision has immediate and far-reaching implications. For Musk, it restores not only his compensation but also his leverage and long-term alignment with Tesla at a time when the company is pushing aggressively into artificial intelligence, robotics and next-generation energy systems. For corporate boards, it offers renewed confidence that ambitious, equity-heavy pay packages can withstand legal scrutiny if properly structured and approved.
Tesla shares reacted positively to the ruling, with investors interpreting the outcome as a stabilising signal for leadership continuity. Musk has previously hinted that uncertainty around his compensation could influence his long-term commitment to Tesla, particularly as he balances responsibilities across SpaceX, xAI, Neuralink and other ventures.
Beyond Tesla, the ruling is likely to shape future debates on executive pay governance in the United States. Legal experts say it could discourage courts from retroactively unwinding shareholder-approved compensation deals, while also reinforcing the need for rigorous disclosure and independent board oversight.
With the restored options back on his balance sheet, Musk’s net worth now dwarfs that of other tech titans, reflecting both Tesla’s scale and the extreme upside of performance-linked compensation in high-growth companies. Whether the ruling marks the end of the controversy or simply the next chapter in Musk’s long legal and corporate saga remains to be seen.
