In this articleTSLA your favorite stocksCREATE FREE ACCOUNTTesla and SpaceX CEO Elon Musk arrives to the inauguration of U.S. President-elect Donald Trump in the Rotunda of the U.S. Capitol on Jan.
20, 2025 in Washington, DC. Chip Somodevilla | Via ReutersA version of this article appeared in CNBC's Inside Wealth with Robert Frank, a weekly guide to the high-net-worth investor and consumer.
to receive future editions, straight to your inbox.Tesla said it needed to incentivize CEO Elon Musk with a record- pay package in order to compete with his , according to a xy the company filed last week.The filing outlines a award that could be worth $1 trillion if it all pays out.
Tesla also said Musk's other companies — mainly SpaceX and xAI Holdings — now account for most of his wealth and therefore will command most of his attention unless Tesla pays him more."A majority of Mr.
Musk's wealth is now derived from other ventures outside of Tesla, and he has more attractive options today than ever before," the xy said.
The pay package of up to 423 million s is necessary, it added, to prevent Musk from "prioritizing other ventures."It will be up to holders to apve the package, of course.
But the xy highlights the surging valuations of Musk's and the competing interests of xAI, SpaceX and Tesla.Until last year, the vast majority of Musk's wealth came from his Tesla stock.
The Bloomberg Billionaires Index pegs Musk's wealth at $385 billion, while Forbes estimates his wealth is at $436 billion.
The difference is ly tied to his 2018 pay package, which is still in dispute and is valued at between $60 billion and $100 billion.
If the compensation plan is restored, and/or he receives an interim comp package posed in the xy, Musk's net worth is closer to $436 billion.Today, less than half of that fortune comes from Tesla stock.Get Inside Wealth directly to your inboxThe Inside Wealth by Robert Frank is your weekly guide to high-net-worth investors and the industries that serve them.
here to get access today. Based on his current ownership of 13% of the company, Musk's Tesla s are worth $140 billion.
Musk has argued that he needs at least 25% of voting control of Tesla to prevent the company from being taken over as it develops highly sensitive and powerful artificial intelligence nology and robots.At SpaceX and xAI, he has more voting control, with 42% of SpaceX and a majority stake in xAI.
SpaceX is planning an insider sale that would reportedly value the company at $400 billion, nearly double its valuation last year.
At the $400 billion valuation, Musk's stake would be worth $170 billion — more than the value of his current Tesla stake.xAI's valuation has grown even faster, from $80 billion at the start of the year to a potential $200 billion in a new fundraising round.
Musk owns more than 50% of the company, putting his stake well over $100 billion.Together, Musk's stake in xAI and SpaceX are now worth nearly twice as much as his Tesla s.
Added to his stakes in Neuralink — valued at around $9 billion — and his other companies, his private company wealth eclipses his Tesla wealth.Of course, that may not be for long.
If he is awarded the 423.7 million s of restricted stock in the new 2025 compensation plan, and if Tesla hits its target valuation of $8.5 trillion, Musk's Tesla s would be worth over $2 trillion.