The Terms of Musk’s Enormous Stock Grant
In an August 3rd, 2025, U.S Securities and Exchange Commission filing, Tesla’s board of directors approved the grant with a two-year vesting, provided that Musk continues to be CEO or occupies another key executive role. However, Musk remains in the middle of a court battle regarding his 2018 pay package. If that case concludes with him being permitted to exercise those prior options, this new award won’t be forthcoming. On the other hand, if it goes through, the payout would be astronomical.
What’s It Worth?
When the award was originally announced, the 96 million shares had an estimated value of approximately $29 billion. With Tesla’s stock having closed at $341.21 on 13th August 2025, the total has risen to about $32.5 billion. To give that some context, if you were suddenly worth $32.5 billion, you’d be the 60th richest individual in the world, without ever producing a single electric car or rocket.
Musk’s $418.5 billion net worth also continues to top the global rich list, but the margin is contracting. Tesla shares are down roughly 25% since their January 17 close at $426.50, when this award would have been valued at $40.9 billion. Nevertheless, the larger picture is that a year ago, the shares were at $201, so they’ve risen nearly 69% year to year.
The Larger Scenario of Musk’s Wealth
Musk’s wealth is based mainly on three pillars. First is Tesla, where he controls about 12% of the company (excluding options), valued at around $120 billion at present valuations. Second is SpaceX, the rocket firm worth more than $200 billion on private markets. Third is xAI, his tech company that’s surfing the waves with its artificial intelligence venture.
The recent legal twist to Tesla’s 2018 compensation package is quite consequential. In early 2024, a Delaware court invalidated the agreement that would have awarded Musk options for an additional 9% of Tesla’s stock, deeming them excessive. Musk is fighting it, but Forbes has already reduced the value of those disputed options by 50%.
Tesla Enters Political and Legal Storms
This year has not been a smooth ride for Tesla. Sales have dived in important global markets, and Musk’s period as director of the Department of Government Efficiency (DOGE) for President Donald Trump created political ripples. The team was disreputable for rapid staff dismissals and agency closures, and they brought both Musk’s reputation and Tesla’s brand into disrepute. Adding to the volatility, Musk and Tesla are hit with a shareholder lawsuit claiming securities fraud. The suit accuses them of camouflaging safety risks associated with autonomous driving technology, specifically the highly flaunted robotaxi project.
A Strategic Wager
Elon Musk’s new stock award can be considered one of the largest CEO pay packages in the history of corporate America. With lawsuits, political repercussions, and Tesla’s unstable stock price up for grabs, the path forward is anything but smooth. Yet if history is any indicator, Musk has a habit of flourishing in turmoil, and Tesla shareholders have learned to never count out his capability for making daring gambles generate headline grabbing outcomes.
Whether this transaction will ultimately represent a visionary investment in leadership or a costly experiment in corporate remains to be seen. It will rely on Tesla’s success in steering through an increasingly constricting EV market, impending legal wars, and Musk’s own controversial public presence. Shareholders can be divided about whether one individual should have so much financial and strategic influence, but no one disputes Musk’s aptitude for dominating headlines. Meanwhile, the $32.5 billion question is basic and in every other investor’s mind. Will this newest incentive propel Tesla’s next great leg, or simply bring in another zero to Musk’s net worth?
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