Business magnate Elon Musk has achieved a historic milestone, becoming the first individual to accumulate a net worth exceeding $700 billion, with his fortune reaching $749 billion by Friday evening.
According to Forbes' billionaire index, this surge in wealth was propelled by a Delaware Supreme Court ruling that reinstated Tesla stock options valued at $139 billion.
The rebound followed the Delaware Supreme Court's reversal of a previous decision that had nullified Musk's 2018 compensation package—once valued at $56 billion—declaring the 2024 ruling that rescinded it as "inappropriate and inequitable" towards the executive.
Reports indicate that the package was reinstated two years after being dismissed by a lower court for being "inconceivable," which explains the leap that pushed Musk past the $700 billion threshold.
This new benchmark comes just days after another noteworthy achievement: earlier that same week, Musk had already broken the $600 billion net worth barrier, driven by reports suggesting that his aerospace firm SpaceX might go public with a valuation of $800 billion.
The second report also notes Musk was the first to eclipse $500 billion in October, with his wealth bolstered by an estimated 42% stake in SpaceX and about 12% in Tesla, whose stock had risen 13% during the year, despite a decline in sales.
Additionally, in November, Tesla shareholders separately approved a $1 billion compensation plan for Musk, described as the largest corporate pay package ever, positioning his wealth nearly $500 billion ahead of Google co-founder Larry Page, the world's second-richest individual.
In November, Tesla's shareholders approved an unprecedented $1 trillion stock compensation package for CEO Elon Musk, further solidifying his influence over the electric vehicle manufacturer.
The proposal received approval from more than 75% of shareholders, despite opposition from several institutional funds that had raised concerns about the plan's scale and conditions.
The board allowed Musk, who already owned roughly 15% of the company’s shares, to participate in the vote.
Understanding Elon Musk's Financial Milestones
What led to Elon Musk's net worth surpassing $700 billion?
A Delaware Supreme Court ruling reinstating Tesla stock options valued at $139 billion significantly contributed to Elon Musk's net worth surpassing $700 billion.
How did Elon Musk's wealth grow so rapidly?
Musk's wealth surged due to a combination of factors, including the reinstatement of Tesla stock options, his stakes in SpaceX and Tesla, and the anticipation of SpaceX potentially going public with an $800 billion valuation.
What was the significance of the compensation package approved by Tesla shareholders?
The $1 trillion stock compensation package approved by Tesla shareholders for Musk was significant as it further cemented his control over the company and marked the largest corporate pay package in history.