Elon Musk’s pay package, originally worth $56 billion, was reportedly restored by the Delaware Supreme Court on Friday.

This decision comes nearly two years after a lower court overturned the deal, which had previously been described as unfathomable.

The Supreme Court stated that the 2024 ruling was ‘improper and inequitable’ and that Musk is entitled to the compensation package.

The remedy of revocation “leaves Musk uncompensated for his time and efforts over a period of six years. “

According to Reuters, the 2018 pay package is estimated at about $139 billion based on the price of Tesla’s stock at the close of trading on Friday.

In this connection, Gene Munster, managing partner at Tesla investor Deepwater Asset Management said, “For Elon this is a win because he gets control faster.’’

If Musk exercises all the stock categories from the 2018 package, his stake in Tesla will grow about 12.4% to 18.1% of an increased share base.

The company is allotting shares to his new package, which he can secure once he achieves specific performance objectives.

The 2018 pay package was far the largest ever until Tesla stakeholders voted to accept an even larger pay plan in November 2025.

Winning the appeal prevents a $26 billion hit to profits that would have been triggered to account for the replacement equity compensation the company had promised Musk.

An approach detrimental to business

Following a five-day trial, Delaware Judge Kathaleen McCormick ruled that Tesla’s directors lack independence and that core elements of the deal were concealed from shareholders when they voted to approve the plan.

Musk criticized Delaware judges, labeling them activists who are aggressive toward tech founders. He urged businesses to follow Tesla and reincorporate in other states.

Dropbox, Robolox, The Trade Desk and Coinbase were among the prominent companies that moved their legal residences for U.S. public companies.

Regarding the current situation, Tesla’s board disclosed that the world's richest person- who leads the SpaceX rocket venture and artificial intelligence xAI- could step from the electric car company if he does not receive his desired pay package and an increase in voting power.

The Delaware Supreme Court may have been disinclined to annul Musk’s pay package because shareholders had a decisive win in favor of it as confirmed by Brian Dunn, director of the Institute for Compensation Studies at Cornell University’s School of Industrial and Labor Relations.

Shareholders ratified the pay package in November, and Tesla had taken vital steps to mitigate the risk that a shareholder could tie up the 2025 package in the courts.

The Austin-based company is now incorporated in Texas which allows it to require that any group of investors must own at least 3% of the company stock before filing a lawsuit for law violation.