Elon Musk wins appeal to restore his 2018 Tesla pay deal worth $56 billion

Elon Musk’s 2018 pay package from Tesla worth $56 billion was restored by the Delaware Supreme Court two years after it was struck down as “unfathomable.”

Elon Musk’s 2018 pay package from Tesla, once worth $56 billion, was restored by the Delaware Supreme Court on Friday, two years after a lower court struck down the compensation deal as “unfathomable.”

The ruling overturns a decision that had prompted a furious backlash from Musk and damaged Delaware’s business-friendly reputation.

The pay package was by far the largest ever until Tesla shareholders approved a new, even larger pay plan in November.

The ruling means that Musk can finally get paid for his work since 2018, when he transformed Tesla from a struggling startup to one of the world’s most valuable companies.

The 2018 pay deal provided Musk options to acquire about 304 million Tesla shares at a deeply discounted price if the company hit various milestones, which it did. Tesla estimated in 2018 that the plan was potentially worth $56 billion, although given the rise in the stock price, the value ballooned to around $120 billion by early November. The options represent around 9% of Tesla’s outstanding stock.