Tesla Chief Executive Officer Elon Musk has become the first person ever to surpass a net worth of $700 billion, following a Delaware Supreme Court decision that restored a huge stock options award previously scrapped by a lower court.
According to Forbes’ billionaires index, Musk’s fortune stood at an estimated $749 billion on Friday after the court reinstated Tesla stock options now valued at $139 billion. The latest surge came just four days after Musk broke through the $600 billion threshold.
The stock options originate from Musk’s 2018 compensation plan, which at one point was valued at $56 billion. In 2024, the Delaware Court of Chancery invalidated the package, describing the approval process as “unfathomable” and pointing to Musk’s dominance over Tesla’s board.
On Friday, the Delaware Supreme Court reversed that ruling, stating that cancelling the pay package had been improper and unfair. In response, Forbes lifted the 50 percent haircut it had imposed on the options since January 2024, boosting Musk’s estimated wealth by almost $70 billion.
With the options restored, Tesla has once again become the cornerstone of Musk’s wealth. He holds roughly 12 percent of the electric vehicle maker’s common shares, worth about $199 billion. Together with the reinstated options, Musk’s total Tesla-related holdings are estimated at $338 billion.
This calculation excludes a separate performance-based compensation plan approved by Tesla shareholders in November, which has been described as the largest corporate pay package ever. If long-term growth and valuation targets are achieved, that plan could eventually award Musk Tesla stock valued at up to $1 trillion.
Musk’s second-largest holding is his estimated 42 percent stake in SpaceX, valued at around $336 billion following a recent private tender offer that pegged the company’s worth at about $800 billion. Media reports have indicated that SpaceX may consider an initial public offering as early as 2026.
Forbes data show Musk’s wealth now exceeds that of Google co-founder Larry Page, currently the world’s second-richest individual, by nearly $500 billion, highlighting the unprecedented scale of Musk’s lead atop the global rich list.
Source: With inputs from Indian media