Tesla CEO Elon Musk recovers $55 billion pay package in Delaware court ruling

Core Viewpoint - The Delaware Supreme Court's reversal of a previous decision allows Elon Musk to retain a $55 billion pay package from Tesla, reinforcing his wealth and validating his stance on the Delaware legal system's overreach [1][2]. Group 1: Legal Developments - The Delaware Supreme Court restored Musk's 2018 pay package, which had been rescinded by Chancellor Kathaleen St. Jude McCormick in January 2024 due to a lawsuit from a disgruntled Tesla shareholder [1][2][7]. - The court's ruling highlighted errors in McCormick's decision and awarded Tesla $1 in nominal damages [7]. Group 2: Financial Implications - The restoration of the pay package increases Musk's fortune to $679 billion, further solidifying his status as the world's richest man [2]. - Tesla's market value has significantly increased from the $50 billion to $75 billion range at the time the 2018 pay package was created to its current valuation of $1.6 trillion [6]. Group 3: Corporate Strategy - Following the initial ruling, Musk's dissatisfaction led to Tesla reincorporating in Texas, prompting the board to seek ways to maintain his approval, including a successful shareholder vote to reaffirm the pay package valued at $44.9 billion [3][4]. - Tesla has proposed a new pay package that could potentially reward Musk with $1 trillion if he successfully increases the company's market value to $8.5 trillion over the next decade [4].