Elon Musk's net worth surged to $749 billion late Friday, making him the first person to surpass $700 billion in wealth according to Forbes. The Delaware Supreme Court reinstated his 2018 Tesla compensation package, restoring stock options now valued at $139 billion.
The court overturned a 2024 ruling that had voided the original $56 billion pay deal. Five judges determined the earlier decision was improper and unfair to Musk, who had fully achieved all performance milestones. Tesla shareholders originally approved the package in 2018.
Musk's wealth milestone follows his breakthrough earlier this week, when he became the first person to exceed $600 billion. That surge came amid reports that SpaceX, his aerospace company, was moving toward a public listing.
In November, Tesla shareholders separately approved a new compensation structure for Musk potentially worth $1 trillion. The package represents the largest corporate pay plan in history and aligns with Musk's vision to transform Tesla into an artificial intelligence and robotics leader.
Musk's fortune now exceeds that of Google co-founder Larry Page, the world's second-richest person, by nearly $500 billion according to Forbes. The wealth gap reflects Tesla's $1.6 trillion market capitalization and investor optimism about autonomous vehicle technology.
The Delaware Supreme Court awarded $1 in nominal damages to the plaintiff while restoring Musk's full compensation. Judges emphasized that rescinding the package would leave Musk uncompensated for six years of work despite meeting all targets.
Tesla's board has consistently supported Musk throughout the legal challenges. The company approved an interim $29 billion compensation award in August before unveiling the $1 trillion package that shareholders approved in November.
Analysts responded positively to the court decision. Mizuho Securities reiterated its "Outperform" rating on Tesla and raised its price target to $530 from $475, citing optimism about the company's robotaxi program.
Tesla has advanced its autonomous vehicle testing, with Musk confirming fully driverless trials underway in Austin. The company initially launched robotaxi services with safety monitors but is now removing chaperones as Full Self-Driving technology improves.
Musk's wealth accumulation spans multiple ventures beyond Tesla. He founded and leads SpaceX, which dominates the commercial space launch market with reusable rockets. His other companies include Neuralink for brain-computer interfaces, The Boring Company for tunnel construction, and xAI for artificial intelligence research.
The reinstated 2018 package provides clarity for Tesla's leadership structure and reinforces shareholder authority in corporate governance decisions. The ruling addresses broader implications for executive compensation at Delaware-incorporated companies.
Musk briefly served as a special government employee in the Trump administration's Department of Government Efficiency earlier this year. He worked without salary to advise on cost-cutting measures and federal restructuring efforts, according to NPR.
Tesla's market performance continues to attract institutional investment despite regulatory scrutiny of Musk's compensation. The company faces ongoing challenges in scaling autonomous driving technology while maintaining safety standards.
The wealth milestone underscores Musk's unique position in global business and technology. No other individual has approached the $700 billion threshold, with the gap between Musk and his nearest competitor representing nearly three times Larry Page's $252.6 billion fortune.
Investor enthusiasm for AI-related technologies and space exploration continues to drive valuations across Musk's portfolio. SpaceX's potential public offering could further increase his net worth, potentially pushing him toward trillionaire status.
