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- Dec 19, 202590% CONFIDENCEfrom the source
Delaware Supreme Court Restores Musk's 2018 Tesla Pay Package
- The Delaware Supreme Court ruled on Friday 19 December 2025 that Musk's 2018 Tesla pay package, worth some $56 billion when it vested, must be restored: 'We reverse the Court of Chancery's rescission remedy and award $1 in nominal damages'[1]
- The unsigned per curiam opinion in In re Tesla, Inc. Derivative Litigation (No. 534, 2024) carried no dissent[1][4]
- The justices had 'varying views' on whether the board breached its duties, but agreed that rescinding all 12 option grants was improper because it left Musk uncompensated for six years of work that could not be undone[3]
- Plaintiff's counsel got four times their time, about $54.5 million, instead of the $345 million the Court of Chancery awarded[4]
- Shareholder Richard J. Tornetta sued in 2018; in January 2024 Chancellor Kathaleen McCormick found Musk 'controlled Tesla' and the approval process 'deeply flawed', and Columbia Law professor Dorothy Lund told CNBC the ruling leaves the rest of that decision intact[1]
- The Court of Chancery entered its final order on 18 March 2026, and on 21 April 2026 Tesla's board ruled that it triggered forfeiture of Musk's 2025 interim award of 96 million shares under its 'no double dip' terms[2][5]
References 586% CONFIDENCEOverall confidence: 86%How well the pin's source and references back up its dates.Weighted average of how firmly 5 references, the source included, support the pin's start and end times; a reference counts half as much for every 180 days older than the newestShow all pins at 75% confidence or better
The first entry is always the pin's source. Overall confidence is a weighted average of how firmly each reference supports the start and end times used above; a reference counts half as much for every 180 days older than the newest.
- [1]90%cnbc.com/2025/12/19/musk-tesla-pay-delaware-supreme-court.htmlcnbc.com· Posted Sep 28, 2026· Starts Dec 19, 2025 ✓· 41% of score
CNBC, 19 December 2025: Musk's 2018 pay package 'must be restored, the Delaware Supreme Court ruled Friday'; Skadden[3]: 'On December 19, 2025, the Delaware Supreme Court issued a significant decision'.
- [2]82%Tesla, Inc. Form 10-Q for the quarter ended March 31, 2026sec.gov· Published Apr 23, 2026· 22% of score
Tesla's filing: the Court of Chancery entered a final order on 18 March 2026, and on 21 April 2026 the board ruled it a 'Tornetta Decision Event', forfeiting Musk's 2025 CEO Interim Award.[1]
- [3]85%Delaware Supreme Court Restores Musk's 2018 Pay Packageskadden.com· Published Dec 24, 2025· 14% of score
Skadden: the justices had 'varying views' on the breach finding but agreed rescission of all 12 grants was an improper remedy.
- [4]85%Delaware Supreme Court Reverses Rescission of Elon Musk's Pay Package and Lowers Plaintiff's Fee Awardwsgr.com· Published Dec 22, 2025· 14% of score
Wilson Sonsini on the per curiam decision in In re Tesla, Inc. Derivative Litigation, No. 534, 2024, issued 19 December 2025: $1 nominal damages and a fee of about $54.5 million instead of $345 million.[1]
- [5]80%Tesla, Inc. Form 8-K dated August 3, 2025 (2025 CEO Interim Award)sec.gov· Published Aug 4, 2025· 8% of score
The 96-million-share interim award at $23.34 a share, to be forfeited if the Delaware courts let Musk exercise the 2018 award in full.[1]
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