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Tesla Shareholders Re-Approved Elon Musk’s 2018 Pay Award—What Happened Next

Tesla shareholders approved ratification of Elon Musk’s 2018 stock-option award in June 2024. The vote did not end the court case; the Delaware Supreme Court later reversed the rescission remedy.
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Yes. On June 13, 2024, Tesla announced that shareholders approved ratification of Elon Musk’s 2018 CEO Performance Award. The Associated Press reported 77% support and described the award as valued at $44.9 billion at the time. That vote did not itself settle the court case: on December 19, 2025, the Delaware Supreme Court reversed the rescission remedy and awarded $1 in nominal damages.

Did Tesla shareholders re-approve Elon Musk’s pay package?

They approved ratification of the 2018 CEO Performance Award at Tesla’s June 13, 2024 annual meeting. It was a performance-based stock-option award originally approved in 2018—not a newly negotiated compensation package. Tesla’s announcement confirmed that the proposal passed; the Associated Press reported 77% approval.

The $44.9 billion figure was AP’s reported valuation of the award at the time of the 2024 vote. It was not a guaranteed cash payment, and it should not be read as a fixed or current value. The award consisted of stock options whose value depends on the relevant valuation context.

Did the vote mean Musk immediately got the award?

No. The shareholder vote and the pending court case were separate. The vote did not automatically undo the Court of Chancery’s earlier judgment ordering the award rescinded. After Tesla sought to rely on the 2024 vote, the Court of Chancery declined to revise that judgment. As the Delaware Supreme Court later recounted, the lower court considered the vote’s timing after trial, viewed the ratification argument as untimely, and found the second proxy materially misleading.

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What did the Delaware Supreme Court decide?

On December 19, 2025, the Delaware Supreme Court reversed the rescission remedy and awarded $1 in nominal damages. The court’s concluding statement was: “We reverse the Court of Chancery’s rescission remedy and award $1 in nominal damages.” It also addressed the plaintiff’s attorneys’ fees and expenses.

That was a later appellate decision, not an effect of the June 2024 vote itself. The court disposition changed the remedy imposed by the lower court; the nominal-damages award should not be confused with the reported $44.9 billion valuation of the stock-option award.

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Vote and legal outcome at a glance

Question What the sources establish
What did shareholders vote on? Ratification of the 2018 CEO Performance Award, a performance-based stock-option grant.
When was it approved? June 13, 2024, at Tesla’s annual meeting.
How much support did it receive? 77%, as reported by the Associated Press. Tesla’s meeting announcement confirmed passage but did not state the percentage.
What did $44.9 billion mean? AP’s description of the award’s value at the time of the 2024 vote, not a cash payment or a current valuation.
What happened in court afterward? The Delaware Supreme Court reversed the rescission remedy and awarded $1 in nominal damages on December 19, 2025.
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Why the distinction matters

“Shareholders approved it” answers what happened at Tesla’s 2024 meeting. It does not, by itself, describe the legal status of the award after the shareholder litigation. To understand the outcome, the timeline matters: the 2024 ratification vote did not displace the trial court’s judgment, and the Delaware Supreme Court later reversed the rescission remedy on appeal.

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