Elon Musk Says He’s ‘Vindicated’ After Court Revives His Controversial $140B Tesla Pay Package

The ruling lifts a legal overhang that had clouded Musk’s incentives as Tesla leans further into AI and self-driving ambitions.

• The Delaware Supreme Court overturned a lower-court ruling, saying fully voiding the pay deal was an improper remedy.
• Tesla shareholders have consistently supported Musk’s compensation and leadership through multiple votes.
• The decision clears a long-running legal dispute that had kept Musk’s 2018 pay package on hold for years.

Elon Musk said he was “vindicated” after Delaware’s highest court reinstated his landmark 2018 Tesla compensation package, reversing a lower-court ruling that had voided the deal and left the billionaire unpaid for years of work.

Tesla’s stock rose 0.2% in after-hours trading Friday after slipping 0.5% in the regular session, hovering near record levels at $481.20.

The comment came in a post on X after the court overturned a 2024 decision that had struck down the stock-based plan.

Delaware Supreme Court Reverses Prior Ruling

In a unanimous decision on Friday, the Delaware Supreme Court ruled that rescinding Musk’s 2018 stock-based compensation plan was improper, overturning a January 2024 decision by Chancery Court Judge Kathaleen St. J. McCormick.

The court said canceling the package “leaves Musk uncompensated for his time and efforts over a period of six years,” concluding that full rescission was an inequitable remedy. 

The pay package, approved by Tesla shareholders in 2018, allows Musk to acquire roughly 304 million Tesla shares if a series of market value and operational milestones are met. Initially valued at about $56 billion, the plan is now estimated to be worth roughly $140 billion due to Tesla’s stock appreciation.

Pay Deal Blocked After Shareholder Lawsuit

The compensation plan had been frozen after a Tesla shareholder, who owned nine shares at the time, sued the company in Delaware, arguing Musk exerted undue influence over the board members who designed the package.

Judge McCormick agreed, ruling that Tesla’s directors were conflicted and that shareholders had not been fully informed before approving the deal. That decision sparked backlash from Musk and business leaders, with Musk accusing Delaware courts of being hostile to founders and urging companies to reincorporate elsewhere.

Since then, Tesla has moved its legal home to Texas, alongside Musk’s other ventures, including SpaceX and xAI.

Shareholders Reaffirm Support

Tesla shareholders have continued to back Musk’s compensation and leadership. In November, investors approved a separate, performance-based pay plan that could be worth up to $1 trillion if Tesla meets ambitious long-term targets, including large-scale deployment of self-driving robotaxis, humanoid Optimus robots, and sustained profit milestones.

That vote passed with roughly 75% support and increased Musk’s voting control to about 25%, reinforcing shareholder confidence as Tesla pivots deeper into AI and robotics.

Wall Street Reaction

Following the decision, Wedbush Securities managing director Dan Ives commented on the broader implications for Tesla and its chief executive.

“We believe 2026 will be a golden year for Tesla and Musk as the autonomous chapter hits its stride,” Ives said in a post on X.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment was ‘bullish’ amid ‘extremely high’ message volume.

Tesla’s stock has risen 19% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.