Wilmington, Delaware, 20 December (H.S.): The Delaware Supreme Court delivered a landmark ruling on Friday, reinstating Elon Musk's unprecedented 2018 compensation package from Tesla—originally valued at $56 billion and now soaring to approximately $139 billion due to surging stock prices—overturning a lower court's 2024 decision that had deemed the deal unfathomable amid allegations of board conflicts and shareholder deception.

Chancellor Kathaleen McCormick of the Court of Chancery had rescinded the package following a trial initiated by shareholder Richard Tornetta, who held just nine shares, arguing Tesla's directors concealed critical facts and lacked independence when approving options for Musk to acquire 304 million shares at steep discounts upon achieving ambitious milestones—all of which the company surpassed, propelling Tesla from a beleaguered startup to a trillion-dollar enterprise.

The Supreme Court, in a detailed opinion, faulted the rescission as overly punitive, awarding Musk $1 in nominal damages while affirming his uncompensated leadership since 2018, thereby restoring his entitlement to roughly 9% of outstanding stock without immediate payout pending formal processes.

This triumph, capping a protracted saga that spurred Musk's public crusade against Delaware's judiciary—prompting Tesla's 2024 reincorporation in Texas and exits by firms like Dropbox and Coinbase—precedes shareholders' November approval of a superseding $878 billion plan tied to robotics and autonomy targets. Tesla's Texas charter now mandates a 3% stake—valued at $30 billion—for derivative suits, insulating the new package from similar challenges, as Musk balances stewardship of SpaceX and xAI.

---------------

Hindusthan Samachar / Jun Sarkar