Elon Musk becomes first in world to get past $700 bn after Tesla pay ruling

The Delaware Supreme Court reinstated Tesla stock options worth $139 billion, lifting Musk's fortune to a record $749 billion and cementing his lead over the world's other billionaires

Tesla Chief Executive Officer Elon Musk became the first person in history to be worth more than $700 billion after the Delaware Supreme Court reinstated a massive stock options award that had been struck down last year.

 

On Friday, the Forbes’ billionaires index listed Musk’s net worth at an estimated $749 billion after the court restored Tesla stock options - now valued at $139 billion. The ruling came just four days after Musk became the first person to cross the $600 billion mark.

 

Court overturns earlier ruling

 

The options stem from Elon Musk’s 2018 compensation package, which was once valued at $56 billion. In 2024, the Delaware Court of Chancery had voided the award, calling the process behind it “unfathomable” and citing Musk’s influence over Tesla’s board.

 

On Friday, the Delaware Supreme Court overturned that decision, saying the rescission of the pay package was improper and inequitable. Following the ruling, Forbes removed a 50 per cent discount it had applied to the options since January 2024, adding nearly $70 billion to Musk’s estimated wealth.

 

Tesla back at the centre

 

With the options reinstated, Tesla has once again become Musk’s most valuable asset. He owns about 12 per cent of the electric vehicle maker’s common stock, valued at roughly $199 billion. Combined with the restored options, Musk’s total Tesla holdings are estimated at $338 billion.

 

This figure does not include a separate performance-linked pay package approved by Tesla shareholders in November, described as the largest corporate compensation plan in history. That award could eventually grant Musk stock worth up to $1 trillion if Tesla meets long-term growth and valuation targets.

 

SpaceX and billionaire gap

 

Musk’s second-largest asset is his estimated 42 per cent stake in SpaceX, valued at around $336 billion based on a recent private tender offer that priced the aerospace company at about $800 billion. Reports have suggested SpaceX could pursue an initial public offering as early as 2026.

 

The Tesla CEO's fortune now exceeds that of Google co-founder Larry Page, the world’s second-richest person, by nearly $500 billion, according to Forbes, underscoring the scale of his lead at the top of the global rich list.