Elon Musk’s Net Worth
Elon Musk has moved even closer to becoming the first trillionaire ever after a court reinstated his billion-dollar Tesla stock options. According to Forbes’ billionaire index, the chief executive’s net worth rose to $749 billion on Friday, making Musk the first person to surpass the $700 billion mark.
Current Status
He is already the richest man in the world and about $500 billion richer than the second richest, Google co-founder Larry Page, the index said. This follows the Delaware Supreme Court’s decision to reinstate its 2018 Tesla stock options worth $139 billion, which were revoked last year.
Background
This year, Musk was awarded a pay package with shares worth $56bn, but this was thrown out by a lower court in 2024 because the compensation was "unimaginable". Delaware Judge Kathaleen McCormick concluded after a five-day trial that Tesla directors were conflicted and key facts were hidden from shareholders when they voted to approve the plan.
Court Decision
On Friday, the state Supreme Court ruled that the removal of the pay package left the Tesla boss "uncompensated for his time and efforts over a six-year period" and that Ms. McCormick’s sentence was unreasonable and unfair. Musk has not made a formal statement about restoring his options, but said in a response on his social media platform X that he was "confirmed."
Stock Options
If Musk exercises all of the stock options in the 2018 package, his stake in Tesla would grow from about 12.4% to 18.1% of an expanded stock base. It was Tesla’s largest compensation package ever until the electric vehicle maker awarded Musk a compensation plan worth up to $1 trillion in November.
New Compensation Plan
The new plan was approved by 75% of shareholders, but to achieve the full payout Mr. Musk must achieve five milestones over the next decade:
- Deliver 20 million Tesla vehicles and one million robots
- Drive 10 million subscriptions to Tesla’s self-driving feature
- Put one million self-driving robotaxis into operation
- Achieve core profits of up to $400 billion
- Increase Tesla’s market value to $8.5 trillion
Potential Payout
According to the agreement, Musk will not receive a salary, but if he meets all goals, he would receive more than 400 million additional shares of Tesla. If the company value reaches the target, it would be worth around $1 trillion. At the time of writing, Tesla is worth $1.51 trillion.
