Tesla has cancelled the “interim” pay package worth $29 billion that it awarded CEO Elon Musk last year, following a recent decision by the Delaware Supreme Court to reinstate his larger $56 billion compensation package from 2018.

The interim award had been granted in August 2025 as a safeguard in case the court rejected Musk’s appeal.

Tesla had previously told investors that the temporary package would be withdrawn if Musk ultimately won the case, stating that there would be no “double dip.”

Tesla confirmed in a quarterly filing with the U.S. Securities and Exchange Commission on Thursday morning that it terminated the interim award on April 21.

The company said the board approved the decision without Elon Musk or his brother, Kimbal Musk, who also sits on the board.

“These actions are consistent with the ‘no double dip’ principle, which precludes Mr. Musk from getting a windfall in the event that he may exercise the 2018 CEO Performance Award,” Tesla wrote in the filing.

Tesla awarded Elon Musk the $56 billion compensation package in 2018, but it was later challenged in court by a shareholder who argued that the CEO effectively negotiated against himself in setting the terms and failed to properly disclose this to investors.

The case moved through Delaware’s Chancery Court over several years, and in 2024 a judge ruled in favour of the plaintiff, invalidating the pay package.