New Delhi, Dec 20 (NationPress) The Delaware Supreme Court in the United States has reinstated Elon Musk’s 2018 compensation package from Tesla, reversing a previous lower-court ruling that deemed it "unfathomable". The latest decision overturns a 2024 judgment that nullified the package, stating that complete rescission would leave Musk "uncompensated for his time and efforts over a span of six years," according to various media reports.

This prior ruling reportedly harmed Delaware's reputation as a business-friendly state, while the new ruling grants Musk increased authority over the company, addressing his primary concern, especially after shareholders recently ratified a new compensation package that could be valued at $878 billion contingent on Tesla achieving specific milestones.

The 2018 compensation deal is now valued at approximately $139 billion based on Tesla’s closing stock price as of Friday. Should Musk exercise all stock options from this package, his ownership stake could increase from around 12.4 percent to 18.1 percent of an expanded share base.

Musk expressed his feelings of being "vindicated" on social media platform X. Meanwhile, attorneys who contested the pay package indicated they were contemplating further actions, expressing pride in holding the Tesla board and its largest shareholder accountable for breaches of fiduciary duty.

The 2018 pay arrangement allowed Musk to purchase around 304 million shares at a discounted rate if Tesla achieved certain targets. Tesla's board had previously cautioned that Musk, the world’s richest individual, heading the SpaceX rocket enterprise, could potentially exit the electric vehicle company if his compensation faced disruption.

Recently, Musk defended the H-1B visa program, asserting that the US economy has immensely benefited from Indian immigrants. He emphasized the need for high-skilled workers from India, while also highlighting the misuse of the visa system by some outsourcing entities. Musk remarked that America has greatly benefited from talent sourced from India, noting that his companies consistently struggle to fill specialized positions due to a lack of skilled individuals.