Elon Musk's Ownership Stake in Tesla Has Risen Up To to 20.5%, Now Valued at Over $120 billion

As per an SEC filing, Elon Musk, the CEO and Founder of the electric vehicle manufacturer Tesla, increased his ownership share to 20.5%.

Published on Feb 16, 2024  |  12:37 PM IST |  56.6K
Image Courtesy: Tesla
Image Courtesy: Tesla

An SEC filing on Wednesday revealed that Elon Musk has a 20.5% interest in Tesla, valued at just over $120 billion. The 20.5% interest is only less than the 22% position Musk owned before beginning to sell stock to pay for his $44 billion acquisition of Twitter, but it represents a significant rise from the 13% stake Musk had in Tesla as of May 2023.

Elon Musk has increased his ownership in Tesla to 20.5%

As stated in the filing, Elon Musk owns 411.06 million shares of common Tesla stock in addition to options to buy an additional 303.96 million shares, which are exercisable within sixty days of December 31.

According to the SEC filing, Musk is not far from obtaining the 25% ownership he wants. He wants more control over the business to maintain his motivation to work on different initiatives under the Tesla name, such as artificial intelligence and robots.

Last month, Musk tweeted, "I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control. Enough to be influential, but not so much that I can't be overturned. Unless that is the case, I would prefer to build products outside of Tesla."


Musk's compensation package

Musk's huge 2018 compensation package—which has subsequently been challenged in court—has influenced his substantial ownership share in Tesla. Musk received tranches of Tesla stock as part of the $55 billion compensation package, which was contingent upon him reaching specific market capitalization targets.

A Delaware state court judge rejected his 2018 compensation package. A shareholder brought legal action to challenge the compensation, arguing that it constituted a disproportionate share allocation. As per Judge Kathleen McCormick, the pay plan's approval by the Tesla board was "deeply flawed." The decision meant that, nearly five years after the co-founder of the business was awarded the largest executive compensation package in history, the board of Tesla Motors will have to start afresh and create a new proposal.

According to a Bloomberg report, with a net worth of a little over $200 billion, Musk is the richest person in the world given that to his substantial stake in Tesla as well as his ownership shares in SpaceX and X,

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Know more about Tesla

What is Tesla's net worth?
According to Forbes, Tesla net worth as of January, 2024 is $582.54B.

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