On the 19th, the Supreme Court of Delaware in the U.S. determined that a lower - court's decision to nullify Tesla CEO Elon Musk's original $56 billion compensation package was overly drastic, and mandated that the package be reinstated. The Supreme Court of Delaware highlighted that the lower court had deprived Tesla of the chance to clarify the standards for determining fair compensation.

In 2018, Tesla's board of directors and shareholders' meeting green - lit the compensation package. This package outlined 12 objectives. For every goal Musk accomplished, he would be entitled to corresponding stock option incentives.

The plaintiff, Richard Tornetta, a minority shareholder of Tesla, contended that Tesla's board of directors had neglected its duties. He claimed that this negligence allowed Musk to exert undue influence during the approval process of the compensation package, ultimately resulting in Musk's "unjust enrichment."

On January 30, 2024, Kathaleen McCormick, the Chancellor of the Delaware Court of Chancery, declared Musk's compensation package invalid. In June of the same year, Tesla's shareholders' meeting once again approved the compensation package. However, on December 2 of that year, McCormick ruled to uphold her prior decision.

Subsequently, the defendants appealed to the Supreme Court of Delaware, seeking to overturn the lower - court's ruling.

Currently, Musk holds roughly a 13% stake in Tesla. The original $56 billion compensation package has now soared to approximately $140 billion. If Musk exercises all his stock options, his stake will increase to 18.1%.

Tornetta's lawyer stated that they are in the process of considering their next course of action. Tesla remained silent on the matter, while Musk took to social media to declare that he "has been vindicated."