Musk is the first individual to surpass $700B net worth
What's the story
Elon Musk has made history by becoming the first person ever to cross a net worth of $700 billion. The milestone was achieved after the Delaware Supreme Court reinstated a massive stock options award tied to his 2018 compensation package as Tesla CEO. The court's decision came just days after Musk became the first individual to surpass the $600 billion mark.
Legal battle
Court reinstates Musk's 2018 pay package
The stock options, which were once worth $56 billion, had been voided by the Delaware Court of Chancery before the Delaware Supreme Court's decision. The court had called the process behind it "unfathomable" and cited Musk's influence over Tesla's board as a reason for its decision. However, on Friday, the Delaware Supreme Court overturned that ruling, calling the rescission of the pay package improper and inequitable.
Wealth increase
Musk's net worth surges post-court ruling
Following the court's decision, Forbes removed a 50% discount it had applied to the options. This adjustment added nearly $70 billion to Musk's estimated wealth. With these options reinstated, Tesla has once again become his most valuable asset. He owns some 12% of the electric vehicle (EV) maker's common stock, worth about $199 billion.
Asset valuation
Total Tesla holdings estimated at $338 billion
Along with the reinstated 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. The package, which is described as the largest corporate compensation plan in history, could eventually give Musk stock worth up to $1 trillion if certain long-term growth and valuation targets are met.
Aerospace venture
Musk's SpaceX stake and future plans
Musk's second-largest asset is his estimated 42% stake in SpaceX, which is worth around $336 billion. This valuation is based on a recent private tender offer that priced the aerospace company at about $800 billion. There are reports that SpaceX could go public as early as 2026. Earlier this week, Musk became the first person to cross the $600 billion mark amid reports of his aerospace startup SpaceX possibly going public.