Tesla Inc. announced on April 24, 2026, that it has formally revoked a $29 billion interim compensation package previously established for Chief Executive Officer Elon Musk. The decision follows a definitive ruling from the Delaware Supreme Court that upheld Musk’s original 2018 performance-based pay award, which is valued at approximately $56 billion. The board of directors confirmed that the interim package was a contingency measure designed to ensure executive continuity during legal appeals and is no longer required now that the primary compensation plan has been legally reinstated.
The Delaware Supreme Court’s decision concludes a multi-year legal dispute that began when a lower court voided the 2018 package in early 2024. The high court’s ruling determined that the disclosures provided to shareholders during the initial 2018 vote, as well as a subsequent ratification vote held by Tesla in 2025, were sufficient to meet the legal requirements for transparency and fairness. By upholding the 2018 award, the court has restored Musk’s right to stock options covering approximately 303 million shares, adjusted for splits, which were earned through the achievement of specific market capitalization and operational milestones.
In official filings released on April 24, Tesla’s board noted that the revocation of the interim $29 billion package adheres to a "no double-dip" policy established at the time of the interim plan’s proposal. This policy was designed to prevent the CEO from receiving overlapping compensation for the same performance periods. With the 2018 package now legally secured, the board moved to void the interim arrangement to maintain compliance with corporate governance standards and to avoid redundant expenses on the company’s balance sheet.
The 2018 compensation plan was structured around 12 tranches of options that vested as Tesla reached specific targets, including a market valuation of $650 billion and various revenue and adjusted EBITDA goals. Tesla confirmed that all milestones associated with the 2018 plan had been achieved prior to the legal challenges. The interim $29 billion package had been structured with similar performance metrics but was scaled to reflect the company’s financial position at the time of its creation.
Robyn Denholm, Chair of the Tesla Board, stated that the resolution provides necessary clarity regarding the company’s leadership incentives. The board emphasized that the restoration of the 2018 plan aligns with the original intent of the shareholders who approved the agreement. Tesla’s legal representatives noted that the formal revocation of the interim package is a procedural step required to finalize the company’s executive compensation records following the court's mandate.