This comes after SpaceX, his private aerospace company, launched a December tender offer valuing the firm at $800 billion, double its worth in August, according to two investors who spoke to Forbes. 

Musk, who owns roughly 42% of SpaceX, sees his stake alone jump by an estimated $168 billion, bringing his total net worth to around $677 billion as of Monday noon Eastern Time.

SpaceX is preparing for a public offering in 2026, which could value the company near $1.5 trillion. Even without the IPO, Musk’s SpaceX holdings are now his single most valuable asset. 

Tesla is a major contributor too; his 12% stake in the electric vehicle company is estimated at $197 billion. Meanwhile, Musk is appealing a Delaware court decision that voided parts of his 2018 CEO Performance Award, which Forbes has discounted by 50% pending the outcome, currently estimated at $69 billion.

Musk’s reach extends beyond Tesla and SpaceX. His AI startup, xAI Holdings, is reportedly in talks to raise $15 billion in new funding at a $230 billion valuation, double its March 2025 valuation of $113 billion. Musk owns 53% of xAI, which Forbes estimates at $60 billion.

Tesla shareholders have also approved a record-breaking $1 trillion pay plan for Musk, contingent on achievements such as growing Tesla’s market capitalisation eightfold over the next decade. “Mars shot” targets like this show Musk’s vision of merging electric vehicles with robotics and AI.

Over the past five years, Elon Musk has repeatedly rewritten the record books, making the $600 billion worth no surprise.

He was worth $24.6 billion in March 2020, surpassed $100 billion in August 2020, $200 billion in 2021, $300 billion later that year, $400 billion in December 2024, and $500 billion in October 2025. His lead over the second-richest person, Google co-founder Larry Page, now sits at $425 billion.

SpaceX’s growth, particularly through Starlink’s expansion to over three million subscribers and ventures into aviation and maritime internet services, is a key driver of Musk’s wealth surge. 

Tesla, despite slower sales, has seen its stock climb 13% this year, partly due to investor confidence in Musk’s robotics and autonomous vehicle ambitions.

If the SpaceX IPO meets its projected valuation, Musk could soon become the first trillionaire in history.

The package, supported by over 75% of investors, is the largest corporate pay agreement in history.

The decision was announced at Tesla’s annual meeting in Austin, Texas, where Musk commended cheers and dancing robots. “What we are about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book,” he told shareholders.

The package is tied to performance milestones rather than a fixed salary. It consists of 12 tranches linked to Tesla’s operational achievements and market valuation. 

To unlock the full payout, Tesla’s market capitalisation must grow from about $1.5 trillion to $8.5 trillion over the next decade. Each milestone gives Musk an additional 1% of Tesla’s stock, meaning he could still secure tens of billions even if he falls short of the final target.

The board presented the package as essential for retaining Elon Musk and ensuring long-term growth. “If completed, these tranches of awarded shares follow strong improvements in revenue growth for Tesla,” said Brian Mulberry, senior client portfolio manager at Zacks Investment Management. 

“Will the growth offset these concerns of dilution, or, is this just giving Elon his wish of enough influence to shape the future of AI? That remains to be seen.”

Not all shareholders were convinced. Norway’s sovereign wealth fund, along with proxy advisory firms Glass Lewis and Institutional Shareholder Services, opposed the plan, calling it excessive. 

Still, supporters argued that Musk’s leadership and vision, ranging from self-driving cars to humanoid robots, remain central to Tesla’s future success.

Tesla Chair Robyn Denholm defended the decision, saying it reflected a turning point for the company. “Tesla is at an inflection point, I think I’ve said that 3,000 times over the last few weeks, and this last year has been a critical one in our history,” she said.

The new pay package replaces Elon Musk’s earlier $56 billion deal from 2018, which was struck down by a Delaware court earlier this year. Since then, Tesla has moved its incorporation to Texas and is appealing the ruling.

During the meeting, Musk outlined a series of upcoming projects, including the production of a steering-less “Cybercab” robotaxi, a new Roadster model, and plans for “a gigantic chip fab” that could involve a partnership with Intel.

He also insisted that the package is less about personal wealth and more about securing enough voting control to drive Tesla’s next phase of innovation.

Shareholders further approved the re-election of three board members, backed annual elections for all directors, and endorsed Tesla’s investment in Musk’s AI startup, xAI. Some abstained, signalling concerns about potential overlap between Musk’s ventures. 

“Many will be looking for the board to provide assurances and convictions that there are guardrails in place to be sure there’s not too much mixing of businesses,” said Jessica McDougall, partner at Longacre Square.

The decision, to be announced after the company’s annual general meeting in Austin, Texas, will boost Musk’s personal wealth to trillions of dollars and will also reveal how much trust investors have in his leadership and vision to transform Tesla from an electric vehicle maker into a company built around robotics and autonomous systems. 

A “yes” would reaffirm that faith and a “no” could unsettle markets.

The proposed package links Musk’s payout to several targets, which include Tesla delivering 20 million vehicles within a decade, putting one million robotaxis on the road, and raising its market capitalisation from around $1.5 trillion to as much as $8.5 trillion. 

Supporters call these goals huge but achievable under Musk’s leadership. On the other hand, some see them as an excessive risk that gives too much power to one man.

Among the most vocal opponents are Norway’s sovereign wealth fund and leading proxy advisory firms, who argue the package is “excessive” and “unwarranted.” Still, Elon Musk holds about 15% of Tesla’s shares and is allowed to vote them this time, making the pay package approval highly likely.

The vote also follows a case in Delaware, where Musk’s previous $50 billion package was voided earlier this year. Tesla’s relocation to Texas now allows shareholders to revisit that compensation under different corporate laws.

Tesla’s Chair, Robyn Denholm, in a letter to shareholders, urged support for the plan: “The fundamental question for shareholders at this year’s Annual Meeting is simple: Do you want to retain Elon as Tesla’s CEO and motivate him to drive Tesla to become the leading provider of autonomous solutions and the most valuable company in the world?”

Investors will also vote on whether Tesla should invest in xAI, Musk’s artificial intelligence company. He has previously said Tesla “should back the company,” but the board has not endorsed the move. Some see it as a way to speed up Tesla’s AI vision; others fear conflicts of interest, given Musk’s multiple ventures.

Another proposal seeks to abolish Tesla’s supermajority voting requirement, which currently demands a two-thirds majority to make key changes. Previous attempts to scrap it failed in 2019, 2021, and 2022. If passed, it would lower the threshold to a simple majority, and some investors believe it could consolidate Musk’s influence further.

A separate proposal calls for Tesla to adopt a political neutrality policy, prohibiting partisan activity by executives and assigning oversight to a board committee. Tesla’s board opposes the measure, saying its current governance already ensures transparency and accountability.

This measure indirectly tests investor mindset toward Musk’s outspoken political behaviour, including his public support for former U.S. President Donald Trump.

Despite the near certainty of passage, the vote has divided institutional investors. Norway’s sovereign wealth fund, several U.S. pension funds, and major proxy advisers such as ISS and Glass Lewis have all declared opposition. 

Musk’s base of retail shareholders, however, remains fiercely loyal and could provide the margin of victory, as they did in last year’s shareholder vote.

Musk’s personal ventures, public remarks, and unpredictable management style have repeatedly influenced Tesla’s stock and reputation. 

It’s been argued that Tesla’s board has become too aligned with him. Stephen Diamond, a corporate governance expert at Santa Clara University, observed: “There’s very little evidence of any dissent or daylight between the board and Musk on any issue. You just have to wonder whether that’s really a rational way to run the company.”

If the new pay package passes by a wide margin, it would strengthen Musk’s grip on Tesla and symbolically counter the Delaware court’s earlier ruling. But a narrow approval could lead to investor unease over Musk’s position and Tesla’s future governance.

Musk himself has tied his continued leadership to shareholder approval. Tesla’s board previously revealed that he might walk away if denied the package. 

According to a regulatory filing, Musk acquired 2.57 million Tesla shares last week through The Elon Musk Revocable Trust, spending close to $999 million at prices between $371.90 and $396.36 per share. 

This is his first open-market purchase since 2020, a move analysts interpret as both a vote of confidence and a calculated step to strengthen control ahead of an important shareholder meeting in November.

With this acquisition, Musk’s trust directly holds 96 million Tesla shares and indirectly controls more than 413 million, tightening his grip on the company as it prepares to vote on a proposed $1 trillion performance-based compensation package. 

The plan, set for 6 November, ties Musk’s payout to extraordinary milestones such as delivering 20 million vehicles, reaching an $8.5 trillion market cap, and deploying one million robotaxis and humanoid robots. If approved, Musk’s stake could rise to as much as 29%.

Tesla’s stock closed at $395.94 on Monday, up 7.36% and reversing its year-to-date decline of around 2%. Options activity also spiked, with more than 120,000 contracts trading around the $360 strike price, reflecting heightened bullish sentiment despite lower implied volatility. The rally extends a rebound in September, lifting Tesla’s shares nearly 10% month-to-date.

Still, the company’s operational realities are fraught. Global EV sales are down 10% this year. Europe has seen a sharp 40% decline, while China has slipped 6%. In the U.S., temporary strength is being fuelled by consumers rushing to take advantage of the $7,500 federal tax credit before it expires. 

Tesla’s American market share dropped to 38% in August, the lowest in eight years, a contrast to the 80% it held in 2020. Analysts warn that the third-quarter gains may prove short-lived once incentives fade.

Internally, there have been questions over Musk’s political involvement and its effect on Tesla’s brand. Board chair Robyn Denholm objected these concerns on Friday, saying: “It’s up to him” and adding that Musk is now “front and center” at Tesla after several months at the White House.

No company-specific announcements were made that day, the market reaction was triggered solely by political drama.

The breakdown between Musk and Trump, once political allies, has now become a source of instability for Tesla, just as the company is trying to overcome slower EV demand and regulatory issues.

In a series of retaliatory exchanges, Musk criticised Trump’s newly proposed budget bill, which threatens to eliminate electric vehicle tax incentives. Trump fired back, accusing Musk of personal bias and threatening to cancel all federal contracts and subsidies benefiting his businesses.

“The easiest way to save money in our Budget, billions and billions of dollars, is to terminate Elon’s governmental subsidies and contracts,” Trump wrote on his Truth Social platform.

This was an indirect message to investors, Musk’s business empire, including Tesla and SpaceX, is under political issues.

As it stands, Tesla faces at least three challenges: potential withdrawal of EV incentives, a drop in regulatory credit revenue, and greater issues with its self-driving technology.

The U.S. Transportation Department has already begun reviewing Tesla’s “Full Self-Driving” software following a fatal crash. The National Highway Traffic Safety Administration (NHTSA) has confirmed it is “actively engaged in developing a multi-faceted regulatory framework” for autonomous vehicles, which could impact Tesla’s driverless vision.

Tesla’s robotaxi programme, Musk’s central pitch to investors, may be directly impacted. The company insists it can operate fully autonomous vehicles using only cameras, without radar or lidar sensors.

But that approach is controversial. Some analysts believe federal regulators could introduce rules mandating additional sensor technology. If that happens, Tesla would be forced to overhaul its self-driving systems.

“Federal regulators might devise rules requiring lidar, which would hurt Tesla,” said Morningstar analyst Seth Goldstein. “With President Trump, being on his bad side always creates risk that you’re going to get personal retaliation.”

I’ve seen Tesla bounce back from market shocks before, but this feels different. The political environment has changed, and Tesla now finds itself caught in the crossfire.

Dennis Dick, a shareholder and strategist at Stock Trader Network, told Reuters: “Elon’s politics continue to harm the stock. First, he aligned himself with Trump, which upset many potential Democratic buyers. Now he has turned on the Trump administration.”

Trump’s budget bill also proposes cutting the $7,500 federal EV subsidy by the end of 2025. Tesla, along with other automakers, has relied heavily on such incentives to drive adoption.

Analysts at J.P. Morgan estimate that if the bill passes, Tesla could lose up to $1.2 billion annually from reduced vehicle sales, along with an additional $2 billion hit from declining regulatory credit sales.

Even more concerning for investors is how this feud affects Tesla’s standing in Washington. Transportation Secretary Sean Duffy has pushed for regulatory reform around autonomous driving, and up until recently, Musk’s companies were seen as central to federal innovation plans. But Musk’s public attacks on Trump’s “big beautiful bill” may have jeopardised that influence.

Ross Gerber, CEO of Tesla investor Gerber Kawasaki, said, “Every benefit that was perceived he would have got now turns into a negative.”

Musk’s personal wealth also took a hit, down $27 billion in a single day, now reportedly sitting at $388 billion according to Forbes. Tesla’s valuation, while still leading globally at $1 trillion, may no longer feel as untouchable. Toyota, its closest rival, stands at a more modest $290 billion.

The political issue Musk took by endorsing Trump in 2024, initially rewarded with a stock surge of 169%, has now reversed. Since December, shares have tumbled 54%, dragged by protests, falling sales in Europe and China, and cooling sentiment in major U.S. markets like California.

There’s still long-term value in Tesla’s core technology. But for now, the market is wondering if Tesla can survive politically weaponised disruption.

“I am short Tesla. I don’t understand it. I don’t understand its valuation. I don’t understand its fundamentals. I think it’s overhyped,” said Bob Doll, chief investment officer at Crossmark Global Investments.

The Tesla CEO is no stranger to rockiness, but dropping below $300 billion in net worth for the first time in months is a turning point, especially as global markets continue to shudder under the weight of President Trump’s latest trade war.

On Monday alone, Elon Musk saw $4.4 billion wiped from his fortune as Tesla shares slid further. That’s not even the worst of it—he’s lost $134.7 billion since the start of the year. The Bloomberg Billionaires Index now places him at $297.8 billion.

This sudden fall is beyond market jitters. It’s political. Musk’s growing presence inside the Trump administration, especially in his role as a senior adviser and head of the Department of Government Efficiency (DOGE), has dragged him into a storm. On paper, his closeness to Trump should have insulated him. Instead, it’s made him a lightning rod.

Tesla, once the darling of Wall Street and a badge of clean energy progress, is increasingly caught in the crossfire. The company’s stock has nosedived over 50% from its December peak. 

Many investors aren’t shy about what’s pushing them away—Musk’s polarising behaviour and outspoken political views. One Bloomberg report didn’t mince words: “The billionaire CEO’s polarizing behaviour and social media activity are alienating would-be buyers and leading owners of Tesla cars to distance themselves from his politics and the company’s damaged brand.”

That damage isn’t theoretical. It’s showing up on balance sheets and in public sentiment. Protesters have begun targeting Tesla showrooms. Vandalism incidents have picked up. And all this comes as Musk juggles multiple roles, leaving even supporters wondering where his priorities lie.

When asked by Fox Business how he manages his various hats, including advising Trump while running Tesla, SpaceX, and more, Musk didn’t sugar-coat it: “With great difficulty.”

The tariffs, however, have added a sharper edge. Trump’s latest wave of protectionist policies—especially the proposed 50% tariff on Chinese imports—have rattled markets and angered many in the tech and auto sectors. 

Elon Musk, despite backing Trump publicly on some fronts, has made it clear he’s not on board with the trade agenda. Over the weekend, he shared his ideal scenario: “Zero tariffs and a free trade zone between the US and Europe.”

His brother, Kimbal Musk, didn’t hold back either. On X (formerly Twitter), he posted: “Even if tariffs bring jobs back, prices will stay high. It’s a structural, permanent tax on the American consumer.”

The ripple effect has been harsh. Global stock markets went into a tailspin. The Bloomberg index tracking the world’s richest individuals dropped by $271 billion in one day—its third-worst performance in history. Musk ranked sixth in terms of losses on Monday alone. 

Tesla wasn’t the only company bleeding, but its connection to a political firestorm made the damage more public and symbolic.

Meanwhile, the European Union is already placing itself to de-escalate. EU Commission President Ursula von der Leyen showed openness to a mutual tariff freeze on industrial goods to avoid further escalation.

But that may come too late for Musk. The political gamble of standing close to power is looking more costly by the day. Despite holding on to his title as the world’s richest man—for now—his cushion is thinning. 

Jeff Bezos, second on the list, still trails by over $100 billion, but the gap is closing faster than expected.