Musk, X Corp. Reach $500M Twitter Severance Settlement

Elon Musk's company X Corp has reached a tentative $500 million settlement with approximately 6,000 former Twitter employees who were laid off without severance following Musk's acquisition and rebranding of Twitter as X. The settlement comes ahead of a scheduled appeal hearing in the Ninth Circuit Court regarding the existence of a formal Twitter severance plan under federal law. Multiple related severance lawsuits have been filed against Musk and X, including cases involving former executives, with the US Department of Labor supporting the employees' claim that the severance policy qualifies for ERISA coverage. Meanwhile, Tesla's board has approved a $29 billion pay package for Musk, designed to retain his leadership through 2030 amid concerns about governance and investor outrage. This new compensation plan follows the invalidation of Musk's previous $56 billion package by a Delaware judge, reflecting Tesla's strategy to keep Musk amid increasing competition for AI talent. Musk's leadership, technical expertise, and proven track record across industries were highlighted by Tesla board members to justify the unprecedented award despite shareholder concerns.