The US Supreme Court’s decision brings back Elon Musk’s 2018 Tesla pay package and increases his influence at the company. While the legal fight may not be fully over, there is no fresh update beyond this ruling at this time.
Washington, DC, Updated, December 2025: The US Supreme Court has restored Elon Musk’s 2018 pay package from Tesla, overturning a lower court ruling that had cancelled the deal earlier this year.
The decision reverses a 2024 order that had struck down the package and removed Musk’s stock options. The court said the earlier ruling left Musk without pay for several years of work at the electric car maker.
BREAKING: Elon Musk’s 2018 CEO pay package from Tesla, worth some $56 billion when it vested, must be restored, the Delaware Supreme Court has just ruled.
TESLA AND ELON MUSK WON! 🥳 pic.twitter.com/0xFA5K32oV
— Sawyer Merritt (@SawyerMerritt) December 19, 2025
What the court said
In its ruling, the Delaware Supreme Court stated that cancelling the full package was not fair, given the time Musk spent leading Tesla between 2018 and 2024. The judgment runs nearly 50 pages and was reported by several US media outlets.
The earlier decision had raised concerns among business groups, who said it hurt Delaware’s image as a preferred state for company registrations.
Impact on Musk’s Tesla stake
The restored 2018 deal allows Musk to buy about 304 million Tesla shares at a fixed price, but only if performance targets are met. Based on Tesla’s closing stock price last Friday, the package is valued at about $139 billion.
If Musk uses all the options, his ownership in Tesla would rise from about 12.4{3ed7819c3563dca85364f9c966d48c284cd3d43c23a196a6bbb99b5b9eebb247} to nearly 18.1{3ed7819c3563dca85364f9c966d48c284cd3d43c23a196a6bbb99b5b9eebb247} after new shares are issued.
Tesla shareholders had already approved a separate new pay plan for Musk in recent months. That plan could be worth up to $878 billion if long-term goals are achieved.
Reactions from both sides
Musk reacted to the ruling on X, saying he felt cleared of wrongdoing.
Lawyers who had challenged the pay deal said they are reviewing the judgment and considering their next legal steps. They said the case was important to hold Tesla’s board and its top shareholder responsible for their duties.
Tesla’s board has previously warned that Musk could step back from the company if his pay was blocked.
Other recent comments by Musk
Separately, Musk has spoken in support of the H-1B visa program. He said the US economy has gained a lot from skilled workers from India. At the same time, he criticized the misuse of the visa system by some outsourcing firms.
Musk said his companies, including SpaceX, often struggle to hire people for highly skilled roles due to a lack of available talent.
What we know so far
- The 2018 Tesla pay package has been restored by the US Supreme Court
- The deal is now valued at about $139 billion
- Musk’s Tesla stake could rise to over 18{3ed7819c3563dca85364f9c966d48c284cd3d43c23a196a6bbb99b5b9eebb247}
- No new legal filing has been announced yet by either side
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