Elon Musk Just Got a $138 Billion Payday—Sort Of

Elon Musk could be a trillionaire by 2026 if everything breaks his way. (BRENDAN SMIALOWSKI/AFP via Getty Images)

Key Points

• The Delaware Supreme Court reversed a lower court’s decision, reinstating Elon Musk’s 2018 stock options, valued at $138 billion.
• Tesla shareholders this fall approved a new 2025 incentive plan for Musk, potentially worth $1 trillion if performance metrics are met.
• Musk’s net worth increased by over $200 billion in 2025 to $640 billion, with potential for further growth from SpaceX’s IPO.

Elon Musk just keeps winning. Like him or not, the word “trillionaire” could be used to describe the Tesla CEO sooner rather than later.

The Delaware Supreme Court on Friday overruled the Delaware Chancery Court’s 2024 decision to void Musk’s 2018 pay package, which included some 300 million stock options.

The Delaware Supreme Court’s ruling officially restores to Musk the stock options, which are currently worth some $138 billion.

Tesla shareholders initially voted to give Musk the stock options in 2018, with a Delaware judge voiding the award in early 2024, citing inadequate shareholder disclosures. The judge voided the award again after a second shareholder vote passed.

“We reverse the remedy chosen by the Court of Chancery—rescission of the 2018 compensation plan. We reinstate the 2018 plan and award the Plaintiff nominal damages,” reads part of the decision, posted on Friday. “We also award the Plaintiff’s counsel fees based on quantum meruit and expenses.”

“Quantum meruit” is Latin for, essentially, “as much as deserved.” That worked out to $345 million. Not bad for Musk and his lawyers.

Tesla didn’t immediately respond to Barron’s request for comment.

Friday’s decision comes after Tesla shareholders voted this fall to award Musk incentive-laden stock worth roughly $1 trillion if an array of performance metrics were hit.

With the shareholder-approved 2025 plan, the 2018 options restored, and recent xAI and SpaceX business gains, Musk has had an unprecedented year. He’s worth some $640 billion, up more than $200 billion in 2025. That doesn’t even count the roughly 425 million restricted shares just awarded by Tesla shareholders in the 2025 pay award.

SpaceX is reported to be seeking a 2026 initial public offering valuing the rocket company at $1.5 trillion. That increase from the current valuation would mark another $320 billion for Musk, who controls an estimated 40% of the stock. He could be a trillionaire before a single share of the 2025 pay award vests.

Predicting Musk’s wealth would increase in 2025 by $200 billion may have seemed far-fetched earlier this year, as Musk and President Donald Trump’s relationship deteriorated and Tesla’s car sales fell. That’s what happened, though—and it seems his wealth will continue to grow in 2026 and beyond.

Write to Al Root at allen.root@dowjones.com