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What is Elon Musk's net worth? Find out the wealth of the Tesla, SpaceX CEO
- Elon Musk's net worth is currently estimated to be $264 billion and is largely dependent on the performance of Tesla shares. He often vies for the title of the world's richest person with other billionaires like Jeff Bezos and Mark Zuckerberg. Musk became a millionaire before he was 30, after selling his startup Zip2 for over $300 million. He later co-founded online bank X.com, which became PayPal and was acquired by eBay for $1.5 billion. Musk took home around $165 million in the sale. Musk's fortunes have fluctuated over the years, and his estimated net worth reached a peak of $340 billion in November 2021. Musk also owns Twitter and The Boring Company, among other things.
- Tesla is the largest source of Musk's wealth and takes no salary there. Instead, Musk is awarded stock options when the car manufacturer meets challenging performance metrics. Close to half of his wealth is estimated to come from Tesla shares, with over 20% coming from SpaceX stock.
- Musk's 2020 wealth increased rapidly due to Tesla's soaring stock prices during the pandemic. His fortunes were also aided by the rocketing prices of other shares he owns. Musk's wealth, however, has been changeable, primarily related to the ups and downs of Tesla stocks.
- Musk's estimated net worth at the outset of 2020 was almost $30 billion, but just a year later, in early 2021, it had risen to around $170 billion, a five-fold increase in a year.
- Musk's net worth is closely tied to Tesla shares. He has a 100% at-risk performance reward in place, and as a result, he is only compensated when Tesla and all its shareholders do exceptionally well. This helped Musk climb Forbes' Billionaires List in 2012 with an estimated wealth of $2 billion.
- Musk also co-founded SpaceX, a space-exploration firm, and served as its chairman. Musk's net worth reportedly plummeted by $15 billion following the unveiling of Tesla's robotaxi lineup during the 'We, Robot' day on October 10, 2022. In contrast, when Tesla's stock surged by 22% after its earnings beat in November 2022, his net worth increased by around $30 billion.
- Musk's other ventures include tunnel-digging business, The Boring Company, and neurotechnology startup, Neuralink. Musk bought Twitter for $44 billion in October 2022 but stepped down from the CEO position in June 2023.
- Musk is dependent on only compensation such as the 100% at-risk performance reward model for Tesla. Around 20% of his net worth comes from SpaceX stock while the rest is made up of miscellaneous liabilities along with shares of Twitter and The Boring Company.
- Musk's net worth has been on the rise since 2020 and reached its peak of around $340 billion in November 2021. However, the fortunes of his companies, especially Tesla, may impact his overall wealth in the future.
- In 2018, a 10-year performance award for Musk was announced by Tesla, which meant that he would receive no guaranteed compensation of any kind. Instead, his only compensation will be a 100% at-risk performance award.
- Musk has often been vying for the world's richest person position with Jeff Bezos and Mark Zuckerberg, with Musk being currently in the pole position. However, since Musk's net worth is closely tied to Tesla's share price performance, his claim to the title for the long term will depend on Tesla's future shareholder performance.
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