In a landmark ruling that has sent shockwaves through the corporate and financial world, the Delaware Supreme Court has reinstated a colossal compensation package for Tesla CEO Elon Musk, potentially supercharging his wealth and putting him on a direct path to becoming the world's first trillionaire.
A Legal Reversal Worth Billions
On Friday, 20 December 2025, the Delaware Supreme Court overruled an earlier decision by the Delaware Chancery Court. The lower court had voided Musk's historic 2018 pay package from Tesla in early 2024, citing concerns over inadequate disclosures to shareholders. This pay package, originally approved by Tesla shareholders in 2018, granted Musk approximately 300 million stock options.
The Supreme Court's decision officially restores those stock options to Musk, and they are currently valued at a staggering $138 billion. The court reversed the remedy of rescinding the plan, reinstated the 2018 compensation package, and awarded only nominal damages to the plaintiff. The plaintiff's counsel was awarded fees and expenses based on "quantum meruit" (as much as deserved), which amounted to $345 million.
The Unprecedented Wealth Trajectory of Elon Musk
This legal victory caps off an extraordinary year for the billionaire entrepreneur. Musk's net worth has already surged by about $200 billion in 2025 alone, bringing his total estimated wealth to around $640 billion. This increase occurred despite challenges earlier in the year, including a reported deterioration in his relationship with former US President Donald Trump and a dip in Tesla's car sales.
The reinstated $138 billion package is just one piece of a much larger wealth puzzle. This fall, Tesla shareholders voted to award Musk a new, incentive-laden 2025 pay plan. This plan could be worth roughly $1 trillion if an array of ambitious performance targets are met. It includes approximately 425 million restricted Tesla shares that have not yet vested.
The Trillion-Dollar Horizon: SpaceX and Beyond
Musk's march toward a trillion-dollar net worth is further fueled by his other ventures. Reports indicate that his rocket company, SpaceX, is seeking an initial public offering (IPO) in 2026. The IPO could value the company at an astonishing $1.5 trillion.
Given that Musk controls an estimated 40% of SpaceX, such a valuation jump would add approximately $320 billion to his fortune. This means Elon Musk could achieve trillionaire status even before a single share from his new 2025 Tesla award vests. Combined with gains from his artificial intelligence venture xAI, the convergence of these factors paints a picture of unprecedented financial growth.
The Delaware Supreme Court's ruling not only represents a massive personal financial win for Musk but also sets a significant precedent for executive compensation and shareholder authority. As the legal chapter on his 2018 award closes, the world now watches to see if the predictions of the first trillionaire will become a reality by 2026.
