Elon Musk has taken a monumental step towards becoming the world's first trillionaire after a landmark legal victory reinstated a colossal Tesla pay package, catapulting his net worth to unprecedented heights.
Court Reverses Decision on "Unfathomable" Pay Package
The dramatic shift in the Tesla chief executive's fortune followed a ruling by the Delaware Supreme Court on Friday 20 December 2025. The court decided to reinstate Musk's 2018 stock options, worth a staggering $139bn (£103bn). This package, originally awarded in 2018, had been rescinded last year after a lower court judge, Kathaleen McCormick, deemed the compensation "unfathomable".
Judge McCormick had concluded that Tesla's board was conflicted and that key details were withheld from shareholders when they voted to approve the plan. However, the state's supreme court overturned that verdict, stating that rescinding the package had left Musk "uncompensated for his time and efforts over a period of six years" and that the prior ruling was improper.
Wealth Surges Past $700bn Milestone
The immediate impact of the court's decision was seismic for Musk's personal wealth. According to the Forbes billionaires index, his net worth climbed to $749bn (£559bn) on Friday. This made him the first person in history to surpass the $700bn milestone.
Musk, already firmly positioned as the world's richest individual, is now around $500bn (£373bn) wealthier than the second-richest person, Google co-founder Larry Page. In his characteristic style, Musk did not issue a formal statement but posted a reply on his social media platform X, simply stating he felt "vindicated".
The Path to a Trillion-Dollar Fortune
If Musk exercises all the stock options from the 2018 package, his stake in Tesla would increase from approximately 12.4% to 18.1% of an expanded share base. However, this is no longer his largest potential payday.
In November 2025, Tesla shareholders approved a new, even more ambitious compensation plan for Musk that could be worth up to $1trn (£747bn). To receive this astronomical sum in full, he must hit five extraordinary targets within the next decade:
- Deliver 20 million Tesla vehicles and one million robots.
- Drive 10 million subscriptions to Tesla's self-driving feature.
- Bring one million self-driving Robotaxis into operation.
- Earn $400bn in core profit.
- Lift Tesla's total market value to $8.5trn.
Under this agreement, Musk will not receive a salary. Instead, meeting all targets would grant him over 400 million extra Tesla shares, which would be worth around $1trn if the company's value reaches the $8.5trn goal. As of now, Tesla is valued at $1.51trn (£1.12trn).
The reinstatement of his 2018 options, combined with the potential of the new $1trn plan, solidifies Elon Musk's trajectory towards a financial landmark once thought impossible: becoming the first trillionaire.
