Won the lawsuit, Elon Musk still got a fine of Rp. 16 thousand from the court.

Tesla boss Elon Musk/PHOTO Tesla

JAKARTA - Right when Elon Musk's wealth soared like a rocket, the Delaware Supreme Court actually turned the story around. The highest court in the state overturned an earlier ruling that had dismissed Musk's giant compensation package worth 56 billion US dollars from Tesla.

With one blow of the hammer of law, Musk's chances of returning to enjoy the largest salary package in corporate history are open. Reported from Carscoops, Saturday, December 27, even his value is no longer stopping at tens of billions of dollars.

The compensation package first agreed to in 2018 was originally referred to as the largest payment ever given to an executive. However, later Tesla actually proposed a much more aggressive scheme, namely a potential compensation of up to 1 trillion US dollars, provided Musk was able to bring the company to an ambitious performance target in the next decade.

In the 2018 plan, Musk obtained the right to buy about 304 million Tesla shares at a discount. The conditions are clear, Tesla must break through a series of operational and financial milestones that were considered almost impossible but managed to achieve its target.

When announced, the package was worth around 56 billion US dollars. However, according to a Wall Street Journal report, Tesla's stock price surge has made its economic value close to 140 billion US dollars.

Not only is it large in nominal terms, but it is also full of symbolic meaning for Musk's position in the global business world. However, the court still imposed a "symbolic punishment", Musk was required to pay a nominal compensation of 1 US dollar, or the equivalent of Rp. 16 thousand and bear the lawyer's fees, on the grounds that the agreement was considered not entirely fair.

"We dismiss the cancellation action from the Chancery Court and award nominal damages of 1 US dollar. Since the plaintiff failed to prove the right to any other form of compensation, only nominal damages are awarded," the court wrote in its ruling.

This ruling comes amid news that Musk has just set a record as the first person with a net worth exceeding 600 billion US dollars. The surge was triggered by speculation that his aerospace company, SpaceX, is preparing for an initial public offering (IPO).

Musk's wealth is now estimated to have reached 749 billion US dollars. The return of the 2018 salary package also strengthened Musk's claim that the Delaware court had exceeded its authority.

Previously, in 2024, Judge Kathaleen McCormick canceled the agreement on the grounds of conflicts of interest in Tesla's board of directors as well as a lack of transparency of information to investors. He assessed that the board of directors was too under the shadow of Musk and did not carry out independent oversight functions.

Musk responded harshly to the ruling, accusing Delaware judges of being activists and even urging other business leaders not to set up companies in the state. This week, the Delaware Supreme Court overturned the initial ruling, finding procedural errors and misinterpreting the law.

"It is undeniable that Musk has fully fulfilled his obligations under the 2018 grant, and Tesla and its shareholders have reaped the rewards of his performance," the judges said, as quoted by Agence France-Presse.

This legal drama is unlikely to be repeated in Musk's next compensation package. The initial lawsuit originated from a claim by Richard Tornetta, a holder of nine Tesla shares. However, since then, Tesla has moved its legal entity to Texas.

Under Texas law, the threshold for a shareholder lawsuit is much stricter. The plaintiff must own at least 3 percent of the company's shares. As Al Jazeera noted, currently only one person qualifies: Elon Musk himself.