TLDR
- Elon Musk’s net worth surged to $749B after the court reinstated his 2018 Tesla pay deal.
- The restored compensation package is now valued at about $139B due to Tesla stock gains.
- The Supreme Court ruled Musk met all performance targets tied to the pay agreement.
- The decision may restore Musk’s voting power and influence within Tesla.
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Elon Musk’s personal wealth has reached an all-time high of $749 billion following a court decision that reinstated his Tesla compensation package. On December 20, 2025, the Delaware Supreme Court reversed a prior ruling that had voided the 2018 agreement. The court determined that Musk had met the required performance milestones, clearing the path for the stock-based package now valued at approximately $139 billion.
Court Rules in Favor of Musk Over Tesla Compensation Dispute
The Delaware Supreme Court ruled that Musk had fulfilled the conditions outlined in his 2018 compensation agreement. Although the court acknowledged procedural flaws in how Tesla approved the plan, it found that invalidating the entire agreement was not justified.
The original legal challenge came from a Tesla shareholder, who filed a lawsuit in 2016 alleging the plan misled investors. In early 2024, Chancellor Kathaleen McCormick of the Delaware Court of Chancery sided with the plaintiff and voided the package, citing issues with board oversight and conflicts of interest. Tesla later held a new shareholder vote to reaffirm the compensation plan, but the Chancery Court upheld its initial decision.
LATEST: 🔥 🚀 Elon Musk’s net worth hits $749 billion after Delaware court reinstates his 2018 pay package. pic.twitter.com/f8PXp1D0aO
— CEO (@Investments_CEO) December 21, 2025
The Supreme Court overruled that decision, stating that Musk had completed the agreed-upon financial and operational goals. These included market capitalization thresholds and performance targets, which the court said justified full delivery of the stock options.
Impact on Musk’s Voting Power and Investor Sentiment
By regaining access to the full stock award, Musk could see a significant increase in his voting power within Tesla. This would give him greater influence over future decisions at the company, including product development, expansion plans, and executive appointments. The restored award may also affect how Tesla’s board evaluates future compensation structures.
Investor confidence in Musk has continued to grow, especially as Tesla’s market performance has rebounded in recent quarters. The reinstated compensation package, tied entirely to measurable outcomes, reinforces the link between Musk’s personal wealth and Tesla’s success. This alignment remains a key feature of the original plan.
Musk’s influence extends beyond Tesla. Recent reports estimate SpaceX’s valuation at $800 billion, contributing to the rapid rise in its overall net worth. Combined with Tesla’s stock growth, these developments have fueled forecasts that Musk could reach trillionaire status by 2029, assuming continued progress in both companies.
Legal Decision Ends Long-Running Dispute Over Executive Pay
The court’s decision ends a seven-year legal battle and restores one of the largest executive compensation packages in corporate history. With the matter resolved, Tesla and its leadership can now focus on long-term strategy without the overhang of legal uncertainty.
The ruling also highlights broader trends in executive compensation and corporate governance. While the case raised concerns about board independence, the outcome supports the idea that performance-based incentives can remain valid if conditions are met and shareholder value is created
