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Delaware Supreme Court Restores Musk’s 2018 Tesla Pay Package

The ruling permits Musk to exercise about 304 million options because the justices deemed annulment a disproportionate remedy.

Overview

  • Musk can now exercise 303,960,630 Tesla options at a $23.33 strike price, representing a theoretical gain of roughly $140 billion at recent market levels.
  • The high court left intact findings that the 2018 award process was flawed, but it rejected voiding the entire grant as the appropriate remedy.
  • Because the plaintiff did not seek damages, the court awarded a symbolic $1 and left Tesla responsible for the prevailing side’s attorneys’ fees.
  • Tesla’s provisional August offer of about 96 million replacement shares effectively falls away, while a separate shareholder-approved plan from November—potentially worth up to $1 trillion—remains in place.
  • If all options are exercised, Musk’s stake could rise from roughly 12.4% to about 18.1%, increasing dilution for other shareholders, and Forbes now estimates his net worth at about $749 billion.