Elon Musk Surpasses $700 Billion After Tesla Pay Decision
Tesla Chief Executive Officer Elon Musk has made history by becoming the first individual to surpass a net worth of $700 billion, following the Delaware Supreme Court’s decision to reinstate a significant stock options award that had been previously annulled last year. On Friday, the billionaires index reported Musk’s net worth at an estimated $749 billion following the court’s restoration of Tesla stock options, which are now valued at $139 billion. The ruling arrived merely four days following Musk’s achievement of being the first individual to surpass the $600 billion threshold. The options originate from Elon Musk’s 2018 compensation package, which was previously valued at $56 billion. In 2024, the Delaware Court of Chancery voided the award, describing the process behind it as “unfathomable” and highlighting Musk’s influence over Tesla’s board.
On Friday, the Delaware Supreme Court reversed that decision, stating that the cancellation of the pay package was improper and inequitable. In the wake of the ruling, rescinded a 50 percent discount it had previously applied to the options since January 2024, resulting in an increase of nearly $70 billion to Musk’s estimated wealth. With the options reinstated, Tesla has once again emerged as Musk’s most valuable asset. He possesses approximately 12 percent of the common stock of the electric vehicle manufacturer, which is valued at around $199 billion. Musk’s total Tesla holdings, when combined with the restored options, are estimated at $338 billion.
This figure does not encompass a distinct performance-linked pay package sanctioned by Tesla shareholders in November, characterized as the largest corporate compensation plan in history. The award has the potential to provide Musk with stock valued at as much as $1 trillion, contingent upon Tesla achieving its long-term growth and valuation objectives. Musk holds an estimated 42 per cent stake in SpaceX, making it his second-largest asset, valued at approximately $336 billion according to a recent tender offer that assessed the aerospace company at around $800 billion. Reports indicate that SpaceX may consider an initial public offering as soon as 2026.
The Tesla CEO’s fortune now surpasses that of Google co-founder Larry Page, the world’s second-richest individual, by nearly $500 billion, according to a source, highlighting the magnitude of his dominance at the pinnacle of the global wealth rankings.
