On Friday, the Delaware Supreme Court reinstated the 2018 compensation package that Tesla had promised to Musk, a package initially valued at a staggering $56 billion. Two years prior, a lower court had struck down this compensation arrangement. However, this latest ruling has overturned that previous decision, paving the way for Musk to potentially receive compensation commensurate with his contributions since 2018. The 2018 compensation plan granted Musk the option to purchase roughly 304 million Tesla shares at a significantly discounted price, contingent upon the company meeting certain performance milestones. Tesla has successfully reached these milestones, causing the value of the plan to balloon to an estimated $120 billion. Despite this, Musk was unable to exercise these options. Shortly after shareholders approved the compensation, the board of directors found itself embroiled in a lawsuit initiated by investors. In 2024, a judge mandated the cancellation of the plan, prompting Musk to voice his criticism of the judge and encourage companies to consider incorporating in other states. Nonetheless, Delaware continues to be the preferred state of incorporation for publicly traded companies in the United States.